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.