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.
. An investor has $5,000 invested in a stock that has an estimated beta of 1.2, and another $15,000 invested in the stock of the company for which she works. The risk-free rate is 6 percent and the market risk premium is also 6 percent.