You are considering three different investment options (d₁ - buy oil stocks, d₂ - buy online tech stocks, and d₃ - place money in a GIC). How each investment will perform depends on how long the COVID-19 situation persists. If it goes on for a long time (s₂), oil stocks will continue to do very poorly (payoff of -10000), while online tech stocks will do well (payoff of 28000); the situation is reversed if the outbreak resolves quickly (s₁) (payoff of 32000 for oil and -12000 for tech). The return for the GIC, being 'guaranteed', is not random (payoff of 115000). You have estimated the probability of a quick end P(s₁) = 0.37, while P(s₂) = 0.63.

Using the tree, determine the best investment choice using the EMV criterion. (Note that the green triangles are terminal nodes (leaves)you don't need to do any calculation there!) You will enter information from your solution in this and the next several questions.

What is the EMV for node 2?