I just realized B1=cov 1,m/var m and cov 1,2 = B1 x B2 x var m are same formulas, just use m for 2, in second equation

that doesn’t make any sense to me

in the second formula if you take m as security “2”, B2 will become Bm, which equals 1 (beta of market), also cov 1,2 will become cov 1,m. then it will just turn into first equation. which is same as secon, just value given is different.

turkish_dude Wrote: ------------------------------------------------------- > in the second formula if you take m as security > “2”, B2 will become Bm, which equals 1 (beta of > market), also cov 1,2 will become cov 1,m. > > then it will just turn into first equation. which > is same as secon, just value given is different. reference pls, seems unnecessary work to add in B2

Ya, it makes sense Turkish… I’m glad you’ve found something to bring you comfort at this point. Ah!

Hey dude, Relax, it is gonna be ok.