Question: Please go into as much detail as possible. This question is based on the decision tree below. The decision maker's risk tolerance is $500. (2

Please go into as much detail as possible. This

Please go into as much detail as possible.

This question is based on the decision tree below. The decision maker's risk tolerance is $500. (2 points) $275 0.3 $375 0.5 0.7 0.5 $100 $107 $250 a. What is the value of the decision? b. What do you calculate the value of the decision to be when you use a risk premium

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