In this lesson, we learned about indices, mutual funds, and hedge funds. We learned how indices may either be market cap-weighted or price-weighted. We also saw an example of how to construct an index and update its value from one day to the next. We learned about mutual funds and hedge funds. We discussed the concept of actively managed funds versus passively managed funds. We also introduced the idea of Alpha, Beta, and Spark Beta. Moreover, we defined a fund’s relative returns as the fund’s performance relative to its benchmark, which is usually an index. We also learned about open-end mutual funds and closed-end mutual funds. We saw how open-end funds need to handle customer withdrawals and therefore hold cash reserves. We also saw how closed-end funds are designed to address this issue. We also pointed out that the market price of a closed-end fund may trade at a premium or a discount to its fair value. In the next lesson, you will build upon these concepts and learn how exchange-traded funds are designed to improve upon mutual funds. See you soon.