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a) Despite of the lockdowns, the number of deaths and that we possibly have not yet felt fully the effect of the crisis on the
a) Despite of the lockdowns, the number of deaths and that we possibly have not yet felt fully the effect of the crisis on the economy, why do you think that equity prices have recovered in the USA (just use this country as an example) (200 words)
b) Do you think that the recovery in equity prices discussed in a) can be explained by finance theory, if yes which theory? (200 words)
c) By referring to the theory explaining the pricing of equities, discuss four factors that could explain why equity prices should decline? (300 words)
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