Bodie Marcus INVESTMENTS Fourth Edition Examining percentage of variance Total Risk= Systematic Risk Unsystematic Risk Systematic Risk/Total Risk=R2 0m202=R 82n2/(82on2+oe)=R2 Irwvin/McGrazo-Hill 10-10 The McGraw-Hill Companies, Inc, 1999Irwin/McGraw-Hill 10-10 © The McGraw-Hill Companies, Inc., 1999 INVESTMENTS Fourth Edition Bodie Kane Marcus Total Risk = Systematic Risk + Unsystematic Risk Systematic Risk/Total Risk = 2 ßi2 σ m2 / σ2 = 2 βi2 σm2 / (βi2 σm2 + σ2(ei) )= 2 Examining Percentage of Variance Examining Percentage of Variance R R R