What do new parents really need? This list aims to shed some light on the subject: Basic Baby Clothes. Shopping at Babies âRâ Us might lead you to believe your baby needs a bikini, a robe, 40 kinds of shoes, and their own formalwear. But newborns only need the basics.
Calculate the market risk premium by subtracting the risk-free (Rf) rate from the market return (Rm). The expression for the market risk premium is Rm-Rf.
The risk-free rate is 10% and the market risk premium is 5%. The firm should: a.Reject the project; its return is less than the firmâs required rate of return on the project of 16.9%. b.Accept the project; its return is greater than the firmâs required rate of return on the project of 12.05%.