Comment on Live Example -1

Govil Bhole commented on 19 Nov 2018, 06:19 PM

Thanks for the reply Karthik,
You are right X = Y divided by m. So for one lot of X you need m lots of Y (substitute X=1 in Y= mX). BUT in 13.3 LIVE EXAMPLE of Tata motors and Tata motors DVR, this is what written (copying directly)
“The beta neutrality states that for every 1 stock of Y, we need to have beta*X stock of X”. This is applicable to equation X=mY by substituting Y=1lot, you get X=m lots. As per my understanding, its not Y=mX equation. Please correct me if I’m wrong. Thanks.

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