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The beta can be calculated using the systematic risk and market risk (stock exchange average). What distinquishes systematic risk from market risk?
The market is the average of all shares. Some shares are more risky than the market as a whole and some are less risky.
The beta measures the systematic risk relative to that of the market. So a share with a beta of 2 has twice the systematic risk of the market, whereas a share with a beta of 0.5 has half the systematic risk of the market.I do suggest that you watch my free lectures on CAPM.
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