Part II: Decision Analysis A customer has approached XYZ bank for a $50,000 one-year loan at 12% interest. If the bank does not approve the loan, the $50,000 will be invested in bonds that earn a 4% annual return. Without further information XYZ feels that there is a 6% chance that the customer will totally default on the loan. If the customer totally defaults, the bank loses $50,000. Question 4. Decision Tree and Optimal Strategy Assuming XYZ bank is risk neutral, what should they do? What would be bank's expected profit? Explain the meaning of this expected profit.