why is option B incorrect?
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Jai, why option B is incorrect?
Uska answer ye h ki if you look at total return ka formula toh wha pe TR = Price ret. + Roll Ret. + Collateral Ret.
So, even if Roll ret., is -ve, in absolute terms this -ve can get offset by Collateral Ret. & Price Ret, therefore, option B is incorrect.
If I were to take an ex., then,
Say PR = 100, RR = -50, CR = 70, so, TR = 120
Now, say PR = 70, RR = 30 & CR = 10, so, TR = 110
I hope the explanation along with the ex.,helps you. Thank you!