Financial theory and empirical evidence strongly support the principle that riskier investments provide higher average returns to compensate investors for bearing additional risk.
The retrieved literature consistently supports the foundational financial principle that riskier assets command higher expected returns. Multiple studies utilizing asset pricing frameworks like the CAPM, intertemporal models, and empirical market analyses confirm a positive relationship between risk (such as market beta or covariance) and return. There are no papers in the retrieved set refuting this core relationship.