Question about asset allocation 2022 level 3

CFA Level III Portfolio Management
#1

Hello guys,
I have a question about asset allocation for 2022 level 3 prep.
Can you lower the asset’s duration by replacing bond with equity? Selling bond lowers duration, while buying equity raises its risk measure beta (not duration).
I think this strategy could be useful in pension fund to improve its funded status (underfunded —> overfunded) for liability payments (since equity has higher return potential than bond, and equity lowers asset duration raising the risk tolerance)
Thanks for the reply.

#2

Yes.

#3

Thanks for the reply, magician.

#4

My pleasure.