Abstract
The link between systematic risk and the performance of firms was initially established. The systematic risk was investigated as a framework of CAPM, the Capital Asset Pricing Model, which is an efficient approach to risk assessment. The systematic risk is represented using the CAPMs coefficient (beta). Indicators of financial performance were used to analyze systematic risk. Such indicators comprise of operational efficiency, liquidity, profitability, market valuation, and financial leverage. The study comprises the analysis of Lululemon Company, its competitors, Nike and Adidas Companies, as well as the comparison to the NASDAQ and DAX index. Based on the results of the estimation, the systematic risk of companies is inversely related to profitability, market value, and efficiency indicators. Also, there exists a negative correlation between the systematic risks of one year compared to the previous years. The findings indicate a positive relationship between leverage and systematic risk, growth and systematic risk are not related.
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