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Assess how index mutual funds can mitigate various risks for investors. Include a discussion how the capital asset pricing model affects index fund risk.

From the e-Activity (Go to the SEC Website to read the article "Hedging Your Bets: A Heads Up on Hedge Funds and Funds of Hedge Funds," located at http://www.sec.gov/answers/hedge.htm), determine if more oversight or regulation is needed regarding hedge funds. Support your response with examples or evidence.

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