An analyst reports the following fund information to the advisor of a pension fund that currently invests in government and corporate bonds and carries a surplus of USD 10 million.

| Pension Assets | Assets | Liabilities |

|------------------------|--------|-------------|

| Amount (in USD million)| 100 | 90 |

| Expected Annual Growth | 6% | 7% |

| Modified Duration | 12 | 10 |

| Annual Volatility of Growth | 10% | 5% |