[ryandrake]

Where is it written that returns should necessarily so heavily be tied to risk? Many enterprises are structured this way, but there's no law that says it must be so.

[harryh]

Because people won't generally buy high risk low return investments.

[venomsnake]

Zynga?

[ucaetano]

Because if they are not tied to risk, they will be flooded by candidates, who will drive returns down to the same risk-adjusted levels again.

[cauterized]

Because it's the only way to incentivize people to take that risk?