Sassafras Oll is staking all its remaining capital on widcat exploration off the Cote dHulle. There is a 10% chance of discovering a field with reserves of 50 million barreis. If it finds oll, it will immediately sell the reserves to Big Oll at a price depending on the state of the economy. Thus the possible payoffs are as follows: is Sassafras OIl a risky investment for a diversified investor in the stock market? Yes No