At the end of 2007, Chad & Co.'s pension had USD 350 million worth of assets that were fully invested in equities and USD 180 million in fixed-income liabilities with a modified duration of 14. In 2008, the wide spread effects of the subprime crisis hit the pension fund, causing its investment in equities to loss 50% of their market value. In addition, the immediate response from the government – cutting interest rates – to salvage the situation, caused bond yields to decline by 2%. What was the change in the pension fund's surplus in 2008? | Financial Risk Manager Part 2 Quiz - LeetQuiz