2. Gweru Innovations U.S based Gweru international (Gl) is a financially healthy, rapidly growing import/ export company with a reasonably young workforce. Information regarding Gl's defined benefit pension plan appears in Exhibits 1 \& 2 Exhibit 1 Income element 7\%; price gain element 12% 5 INV4801/101 Exhibit 2 In accordance with GI policy, the plan discounts its liabilities at the market interest rate for bonds of the same duration. Gl's risk objectives include a limitation on volatility of surplus. Giselle Engle, the newly appointed chief financial officer, must explain to the board of directors why the surplus declined in a year when the actual investments return was 100 basis points more than the long-term objective stated by the board. a) Calculate Gl's corporate pension plan surplus. b) Explain how the plan surplus could increase in a given year despite an actual return in short of the long-term return objective