Which of the following best describes speculative risk?

Speculative risk is characterized by the potential for both gain or loss and is typically taken on voluntarily by individuals or organizations. When an entity engages in speculative risk, it is participating in activities where the outcomes are uncertain, such as investing in stocks or starting a new business. The decision to engage in such risks is often based on the potential for a profitable return rather than the certainty of a loss.

In contrast, other options describe aspects that do not align with the nature of speculative risk. For instance, risks that can only result in loss are classified as pure risks, not speculative. The notion that speculative risk results in certain profit is also incorrect, as the essence of speculative risk is uncertainty. Finally, while some speculative risks may not be easily insurable, it is not a characteristic that defines speculative risk itself. Thus, the best description of speculative risk is that it is taken on voluntarily.