How do I calculate the systematic risk?
In order to calculate Systematic risk, one can use the beta coefficient. This is calculated by regressing a security's return on market return. The beta coefficient is then used as a proxy for systematic risk. To calculate this in Sourcetable, use the formula:
β = Cov(Rx, Rm) / Var(Rm), where Rx is the security's return and Rm is the market return.
What is Systematic risk?
Systematic risk is the risk of loss due to factors that affect the entire market, such as economic conditions, political events, or natural disasters. It includes market risk, interest rate risk, purchasing power risk, and exchange rate risk.