What factors define speculative risk?

Speculative risk is characterized by the potential for both loss and gain. This contrasts with pure risks, which only involve the possibility of loss or no loss. In speculative scenarios, individuals or businesses may take on certain risks with the hope of achieving a profit, knowing that there is also the chance of experiencing a loss. Examples of speculative risks include investments in stocks or real estate developments, where the outcomes can vary significantly.

The other options focus on different characteristics of risk. For instance, risk that can be transferred generally pertains to insurable risks, where the financial consequences of a loss can be passed on to an insurance company. Insurable risks and predictable risks, while important in risk management, do not capture the essence of speculative risk, which inherently involves the dual possibility of gain or loss. Thus, the defining factor of speculative risk is the opportunity for both outcomes, which aligns with the correct answer.