Please solve my problem:
Historically, When the market return changed by 10% the return on the stock of Arihant ltd changed by 16%. If the variance of market is 257.81, then calculate the systematic risk of Arihant Ltd.
Minu Sharma (Artcle) 03 May 2016
Beta of Stock = Change in Stock return / Change in Market return
= 16/10 = 1.6
Systematic risk of Stock = Market variance X (Beta Stock)^2
= 257.81 X (1.6)^2