Investors who take bigger risks receive proportionally larger returns.

Evidence

In their experiments, the more Player 1 invests, the bigger not only the amount but also the proportion of the money she gets back — Nicolas Baumard, A mutualistic approach to morality, 151

Categorization

• XREF: Connects to the reader’s analytical question about partner choice and fairness norms — reciprocity norms calibrate return to risk, a mechanism relevant to religious solidarity and moral exchange. — connects to: Demonstrated risk can succeed precisely because it is risky — Thomas C. Schelling, The Strategy of Conflict, 809; In equilibrium, securities with higher betas yield higher expected returns. — Donald MacKenzie, An Engine, Not a Camera: How Financial…, 237; An asset’s expected return rises in a straight line with its market beta — Donald MacKenzie, An Engine, Not a Camera: How Financial…, 254 (+2 more)

Related

• In equilibrium, securities with higher betas yield higher expected returns. (similarity 0.79)

Broader Connections

• Demonstrated risk can succeed precisely because it is risky #corroborates (0.85) — Thomas C. Schelling, The Strategy of Conflict, 809