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 long term calculation.

• Pension assets are deducted from the PBO in only the short term calculation.

• The computed ratios are generally compared to a median (e.g. Compustat data).

• For both long and short term the denominator is the market value of common stock.