Question ID:PT53 S1 Q12 Passage:Melinda: Hazard insurance decreases an individual's risk by judiciously spreading the risk among many policyholders.Jack: I disagree. It makes sense for me to buy fire insurance for my house, but I don't see how doing so lessens the chances that my house will burn down.  Stem:Jack's response most clearly trades on an ambiguity in which one of the following expressions used by Melinda? Correct Answer Choice:CChoice A:judiciously spreading Choice B:many policyholders Choice C:risk Choice D:decreases Choice E:hazard insurance