Question: When assessing pension risk, analysts compute ratios for both long- and short-term risk. Which statement below is not correct? Multiple Choice Pension assets are deducted
When assessing pension risk, analysts compute ratios for both long- and short-term risk. Which statement below is not correct? Multiple Choice Pension assets are deducted from the PBO in only the short term calculation. Pension assets are deducted from the PBO in only the long term calculation. For both long and short term the denominator is the market value of common stock. The computed ratios are generally compared to a median (e.g. Compustat data).
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