An example of pure risk is:

Pure risk refers to situations that present a possibility of loss or no loss, meaning there is no potential for financial gain. Among the options presented, home damage due to a natural disaster fits this definition perfectly, as it embodies a scenario where the homeowner faces the risk of financial loss resulting from events like floods, earthquakes, or storms, with no opportunity for profit from that risk itself.

In contrast, investing in stocks, starting a new business, and buying collectibles are examples of speculative risks. Each involves a chance of both loss and gain; for instance, stock investments can increase in value, a new business may become profitable, and collectibles can appreciate over time. Therefore, the correct identification of home damage due to a natural disaster as an example of pure risk highlights the distinction between potential loss without opportunities for gain, and situations where loss can be accompanied by the potential for profit.