Suppose a stock is currently selling for

$$30$ per share and pays $$0\mathrm{.}10$ per year in

dividends. The analysts predict that the

stock will be selling for $$40$ in one year.

Who is going to buy the stock?

a$)$ What is the impact on current price

of the stock of the new that a

coronavirus is spreading all through

the world? Why?

b$)$ What is the consequence on current

price of the stock of the fact that the

European Central Bank, to face the

pandemic, announces a new plan to buy

bonds in the market?