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Chartered Financial Analyst Level 1

Chartered Financial Analyst Level 1

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A tree diagram provides the following data regarding the dividend per share for a company under two scenarios:

  • Favorable Scenario: Probability 60%, with dividends of 2.00(802.00 (80% probability) or 2.00(801.50 (20% probability).
  • Unfavorable Scenario: Probability 40%, with dividends of 0.75(300.75 (30% probability) or 0.75(300.50 (70% probability). The expected dividend per share under the favorable scenario is closest to:

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