This derivation differs from the one used by CAVIARBF that is similar to our option 2 below. It also differs from PAINTOR that fixes λ based on the observed z-scores and performs once a Cholesky decomposition of the whole m × m SNP correlation matrix that is used repeatedly in each likelihood evaluation. Note that option 1 cannot be used in case of collinearity among the SNPs, because the correlation matrix R is not invertible if two SNPs are perfectly correlated and is unstable with nearly perfectly correlated SNPs.