Mr$.$ Abdullah has $$50,000$ to invest in the financial market for one year. His choices have been

narrowed to two options. Assume that any long$-$term capital gains will be taxed at $20\%.$ Mr$.$

Abdullah$$s minimum attractive rate of return $($MARR$)$ is known to be $5\%$ after taxes. Determine the

payoff amount at the tip of each branch then decide which option should he choose?

$$ Option A$.$ Buy $1,000$ shares of a technology stock at $$50$ per share that will be held for one

year. Since this is a new initial public offering $($IPO$),$ there is not much research information

available on the stock; hence, there will be a brokerage fee of $$100$ for this size of

transaction $($for either buying or selling stocks$).$ Assume that the stock is expected to provide

a return at any one of three different levels: a high level $($A$)$ with a $50\%$ return $($$$25,000),$ a

medium level $($B$)$ with a $9\%$ return $($$$4,500),$ or a low level $($C$)$ with a $30\%$ loss Assume also

that the probabilities of these occurrences are assessed at $0\mathrm{.}25,0\mathrm{.}40,$ and $0\mathrm{.}35,$ respectively.

No stock dividend is anticipated for such a growth$-$oriented company.

$$ Option B$.$ Purchase a $$50,000$ U$.$S$.$ Treasury bond, which pays interest at an effective annual

rate of $7\mathrm{.}5\%($$$3,750).$ The interest earned from the Treasury bond is nontaxable income.

However, there is a $$150$ transaction fee for either buying or selling the bond. Mr$.$

Abdullah$$s dilemma is which alternative to choose to maximize his financial gain.

please solve by drawing a decision tree for both options and kindly do hand written clear solution