Question: a) Why is financial leverage understood to be a fair-weather friend? b) When the value of a currency rises due to demand and supply factors,

  1. a) Why is financial leverage understood to be a fair-weather friend?

  2. b) When the value of a currency rises due to demand and supply factors, is it correct to say that the currency has undergone revaluation? Explain briefly.

  3. c) In a FOREX arbitrage, why is it important to complete a round-trip?

  4. explain using 200 words max

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