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,
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, is it correct to say that the currency has undergone revaluation? Explain briefly.
c) In a FOREX arbitrage, why is it important to complete a round-trip?
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a Financial leverage is understood to be a fairweather friend because it can magnify both gains and losses In favorable market conditions or when a co... View full answer
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