Kim Deal, a foreign exchange $($FX$)$ trader working at AMBS hedge fund in New

York, U$.$S$.,$ has uncovered persistent violations of covered interest rate parity for USD

$($U$.$S$.$ dollar$)$ and MXN $($Mexican Peso$)$ in the market. Using historical data, Kim Deal

implements an FX strategy exploiting these opportunities and confirms spectacular

$ returns. Explain the reason why such returns can be considered as a reward for taking

risks.