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.
Where: 1  E(R) = the required rate of return, or expected return. 2  RFR = the risk free rate. 3  Î² stock = beta of the stock. 4  R market = return of the market as a whole. ( 5 R market â RFR) = the market risk premium, or the return above the risk-free rate to accommodate additional unsystematic risk.inding the required rate of return can be done by using the capital asset pricing model (CAPM). The CAPM will require that you find certain inputs: 1  the risk free rate (RFR). 2  the stock's beta. 3  the expected market return.