Which of the following is an example of pure risk?

Pure risk refers to situations where there is a possibility of loss or no loss, but no chance for profit or gain. The scenario of having your car stolen exemplifies this concept perfectly. In this case, the potential outcome is either loss (the car being stolen) or no loss (the car remains safe), with no opportunity for any financial gain related to the ownership of the car in the context of theft.

In contrast, investing in the stock market involves speculative risk, where there is potential for both loss and gain. Starting a new business carries both risks of losing initial investments and the possibility of making profits, thus involving speculative risk. Gambling in a casino similarly entails a chance of winning money, which again adds an opportunity for gain along with the risk of losing money. Therefore, the scenario of having your car stolen clearly fits the definition of pure risk.