Energy investment. An investment bank is thinking of investing in a start-up alternative energy company. They can become a major investor for $6M, a moderate investor for $3M, or a small investor for $1.5M. The worth of their investment in 12 months will depend on how the price of oil behaves between then and now. A financial analyst produces the following payoff table with the net worth of their investment (predicted worth initial investment) as the payoff.

Construct a decision tree for this payoff table.

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Action Major Price of Oil Substantially About the Substantially Higher Same Lower investment $5,000,000 $3,000,000 - $2,000,000 Moderate investment $2,500,000 $1,500,000 -$1,000,000 Small investment $1,000,000 $500,000 -$100,000