Question

Total return is equal to

A. capital gain+price change

B. yield+income

C. capital gain-loss

D. yield+price change

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Answer 1

Answer:

C

Explanation:

total return =Capital gain -loss

Answer 2

TOTAL RETURN SWAP

Total return is equal to (A) capital gain + price change

GETTING TO KNOW MORE ABOUT TOTAL RETURN SWAP:

* In a total return swap, one party pays a fixed rate while the other pays according to the rate of an underlying or reference asset.

* Total return swaps allow the recipient of the total return to profit from the reference asset without having to own it.

* The receiving party receives any revenue earned by the asset in return for paying a fixed rate for the duration of the swap.

* The receiver bears the systematic and credit risks, whereas the payer bears no risk of performance but bears the credit risk that the receiver may face.