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AFM

Sir how the 3rd formula for Covar derived?

R M

ACCA Professional

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02-Apr-25 14:32

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Formula derivation It is not is syllabus but sharing it

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Sriram Somayajula

Admin

02-Apr-25 14:58

Sir, How COR(X,M) × COR(Y,M) can be COR(X,Y)?

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R M

ACCA Professional

★ 4K+

02-Apr-25 17:27

Sriram Somayajula Admin

Formula derivation It is not is syllabus but sharing it

I know its not in syllabus ,but in case i forget formula, i can derive it. :)

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R M

ACCA Professional

★ 4K+

02-Apr-25 17:33

Thread Starter

R M

Sir, How COR(X,M) × COR(Y,M) can be COR(X,Y)?

Good Question. have a look at the answer that Chat GPT It has derived it in a different way using CAPM model. I am unable to paste here as it coming in code, but there is derivation and i suggest you do not spend time on this. This method is used only when you have sharpe single index model related questions / where data is given w.r.t 2 securities only

Sriram Somayajula

Admin

02-Apr-25 17:56

Okahyyy .. thankyou sirrr😊😊

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R M

ACCA Professional

★ 4K+

02-Apr-25 18:03