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Quick question:

I heard a co-worker say that "most" mutual funds beat index funds (S&P 500) if you consider the "risk adjusted return." Is this true? My co-worker also pointed out that index funds are weighted by market capitalizaiton so when you invest in an index funds you do not get an equal share of all 500 companies. Is this true? Thanks for your help in clearing up these cloudy skies.


P.S. I do not have spell check so the spelling could be a little unfoolish.
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