No, it is correct. Assume an average of 100 and a standard deviation of 15: then the average of the top half is 112. Assume a narrow-sense heritability of 0,5: then the next generation has an average of 106. No further regression to the mean in later generations.
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That's GxE, not CxE.
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Same same in this context (because standardized heritability etc. are ratios of all variance, increase in E variance means lower relative G variance).
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Changes in h2 aren't necessarily indicative of interactions, whereas the paper I linked looks at it directly.
End of conversation
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