# What is the relation between "Capital Market Line" and "Capital Asset Pricing Model (CAPM)"?

$$\beta_i = \frac{cov(R_i,R_M)}{var(R_M)} = \frac{\sigma_i}{\sigma_M}$$
3. In Formula 2, the expression for $$\beta$$ includes a relation between the asset and the market. But in Formula 1 the relation $$\frac{\sigma_i}{\sigma_M}$$ suggest there is no relation between the market and the asset.