An investor is considering how to invest her money. She has two options ? either a domestic mutual fund that only invests in the Retail sector or an international aggressive mutual fund that invests in promising startups in the Food, Beverage & Tobacco sector. The payoff (profit) after one year for these investments depends on the state of economy. The investor thinks that there is 0.75 probability that economy will improve and 0.25 probability that economy will decline. The estimated payoffs are shown in the table below.

Click to go forward, hold to see history State of the Economy Economy Improves Economy Declines (0.75) (0.25) Domestic 3,100 300 Mutual Fund International 6 700 1 200 Mutual Fund ' 1 Construct a decision tree for this problem. Decision Domestic MF International MF