The current COVID-19 pandemic has caused large price reactions, for most financial assets.

- 1 -Discuss how the price reactions can be understood in the context of equilibrium asset pricing.

- in light of your answer in 1), are the shocks likely to be permanent or transitory? Hint: Cash flows, discount rates, asset classes.

- Could we have a situation where prices are permanently negatively affected, but consumers are still better of (those that didnt lose a lot as investors)?