5. Below is an excerpt from an article, published by the BBC: "Fears over the coronavirus triggered a sharp fall in Chinese shares when the market reopened after the Lunar New Year holiday. The Shang- hai Composite index closed nearly 8% lower, its biggest daily drop for more than four years. Manufacturing, materials, and consumer goods companies were among the hardest hit, while healthcare shares 2 soared." (BBC, 3rd February 2020, "Coronavirus: China shares in biggest fall in four years") Why is the share price of companies, involved in the healthcare sec- tor, increasing due to fears associated with the coronavirus? Why is the value of companies involved in the other aforementioned sectors decreasing? (Explain briefly using the concepts we have seen in class.)

5. Below is an excerpt from an article, published by the BBC: "Fears over the coronavirus triggered a sharp fall in Chinese shares when the market reopened after the Lunar New Year holiday. The Shang- hai Composite index closed nearly 8% lower, its biggest daily drop for more than four years. Manufacturing, materials, and consumer goods companies were among the hardest hit, while healthcare shares 2 soared." (BBC, 3rd February 2020, "Coronavirus: China shares in biggest fall in four years") Why is the share price of companies, involved in the healthcare sec- tor, increasing due to fears associated with the coronavirus? Why is the value of companies involved in the other aforementioned sectors decreasing? (Explain briefly using the concepts we have seen in class.)

Fundamentals of Financial Management, Concise Edition (MindTap Course List)

9th Edition

ISBN:9781305635937

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter17: Multinational Financial Management

Section: Chapter Questions

Problem 4DQ

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