>risk and reward are commensurate in a free market, otherwise someone will arbitrage until it does Would you mind providing a citation that proves this? Also

>risk and reward are commensurate in a free market, otherwise someone will arbitrage until it does Would you mind providing a citation that proves this? Also I'd like to know what you mean by "free market". Are you speaking hypothetically here, or relatively? >the man who risks only .00001% of his wealth only stands to gain .000001% of his wealth. Nonsense, how do you come up with such a number? How much the man stands to gain is unbounded. If for example, some investor's .00001% was $100k, with which he bought 20% of a company that ended up being the next goggle then he would make billions from thousands.