The effects of the risk of sudden events (Covid-۱۹) on the stock value of financial intermediaries

The impact of the risk of sudden events (Covid-۱۹) on the stock value of financial intermediaries has been investigated in this study, and how the stock index reacts when these events occur has been illustrated. The Capital Asset Pricing Model (CAPM) was initially used for this purpose, but data analysis revealed that this approach is ineffective for our goals, so the Markov Switching Model approach was then applied. The outcomes of this approach indicate that, when the stock index is at a high level, the growth and spread of the Coronavirus may cause a decline in the index; conversely, when the stock index is at its lowest level, the development and proliferation of the Coronavirus will lead to a rise in the stock index.