3. Analysis and elaboration. (15' for each) 1) Analysis on the sector rotation. a) What are the factors that influence industries' sensitivity to business cycle? b) How can industries be classified according to this sensitivity? a) Some industries or sector groups will outperform others in a certain state in a business cycle. Please fill in the four blanks with the name of phases in a typical business cycle, link each phase to its corresponding outperforming industries and then explain why you make links in this way. Phases in a business cycle Phase 1: Phase 2: Outperforming industries A. natural resource extraction and processing such as minerals or petroleum B. pharmaceuticals, food, and other necessities C. capital goods industries, such as equipment, transportation, or construction D. consumer durables and luxury items Phase 3: Phase 4: Investments (Page 3 of 4) 3. Analysis and elaboration. (15' for each) 1) Analysis on the sector rotation. a) What are the factors that influence industries' sensitivity to business cycle? b) How can industries be classified according to this sensitivity? a) Some industries or sector groups will outperform others in a certain state in a business cycle. Please fill in the four blanks with the name of phases in a typical business cycle, link each phase to its corresponding outperforming industries and then explain why you make links in this way. Phases in a business cycle Phase 1: Phase 2: Outperforming industries A. natural resource extraction and processing such as minerals or petroleum B. pharmaceuticals, food, and other necessities C. capital goods industries, such as equipment, transportation, or construction D. consumer durables and luxury items Phase 3: Phase 4: Investments (Page 3 of 4)