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Why can taking a riskier route be more effective than taking a conservative route when investing?

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Why can taking a riskier route be more effective than taking a conservative route when investing? (Example: A company looking to expand)

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The simple principle is the more risk involved in an investment, the more money that investment can generate.

For example, someone has 1000 that they want to invest

They can do one of a few things:

1)they could by extremely safe government bonds, and earn a return of maybe 3%. The return is very low because there is no risk ...

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