Discuss how the risk of pandemics such as Covid-19 fits into the Capital Asset Pricing Model.

1. Discuss how the risk of pandemics such as Covid-19 fits into the Capital Asset Pricing Model. [50 marks]
2. How would you expect corporate capital structures to evolve in the next few years in light of the Covid-19 pandemic? [50 marks]
3. How do you reconcile the existence of a fund management industry with market efficiency? [50 marks]