Problem #1 (25 Marks Jim, a risk-neutral investor has some funds available to invest in one of the following choices, high-risk (H), moderate-risk (M) or low-risk (L) stock, to maximize his earnings His payoff for the three stocks depends on how the market moves. Market can rise or decline; there are 40% chances that market will decline. If market is rising (R), he will earn $3200 from high-risk stock, $2475 from moderate-risk and S1850 from low-risk stock. If market is declining (D), he will lose $1500 and $350 from high-risk and moderate-risk stock respectively, but still earn S450 from low-risk stock. (a) Which option should Jim choose, draw a tree to show your decision