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 Security Market Line (SML). The SML equation is expressed as follows: where. 1  E[R i ] = the expected return on asset i, 2  R f = the risk-free rate, 3  E[R m ] = the expected return on the market portfolio, 4  b i = the Beta on asset i, and. 5  E[R m ] - R f = the market risk premium.