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.
1. Find the expected return on a stock given that the risk-free rate is 6%, the expected return on the market portfolio is 12%, and the beta of the stock is 2. 2. Find the beta on a stock given that its expected return is 16%, the risk-free rate is 4%, and the expected return on the market portfolio is 12%.