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(801.50 (20% probability).
Unfavorable Scenario: Probability 40%, with dividends of 0.75(300.50 (70% probability).
The expected dividend per share under the favorable scenario is closest to:
Exam-Like
A
$1.14.
0.0%
B
$1.37.
50.0%
C
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$1.90.
50.0%
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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 (80% probability) or $1.50 (20% probability).
- Unfavorable Scenario: Probability 40%, with dividends of $0.75 (30% probability) or $0.50 (70% probability).
The expected dividend per share under the favorable scenario is closest to: | Chartered Financial Analyst Level 1 Quiz - LeetQuiz