Fidelity Growth Fund has a Beta of 1.4. Which of the following statements concerning Fidelity Growth Fund must be true.

Fidelity plots above the CML
	Fidelity's Beta is equal to that of the S&P 500 (market ) portfolio
	Fidelity's Beta is greater than that of the S&P 500 (market ) portfolio
	Fidelity's Beta is less than that of theh S&P 500 (market ) portfolio
	Fidelity plots above the SML

You manage the Wolves Fixed-Income Mutual Fund. You notice that inflation is picking up and expect that the Federal Reserve will be increasing interest rates over the next few years. You are most likely to:

decrease the duration of your bond portfolio
	keep you bond portfolio duration unchanged but buy bonds with lower coupons
	keep you bond portfolio characteristics unchanged
	increase the duration of your bond portfolio