Which of the Following Statements Is Correct

question 53

Multiple Choice

Which of the following statements is correct?

• A)When a stock dividend is distributed, no assets leave or enter the corporation.
• B)The Common Stock Dividends Distributable account is shown as a current liability on the balance sheet.
• C)When a stock dividend is declared, the total amount debited to Retained Earnings is the par value, or stated value, of the shares to be issued.
• D)When a stock dividend is declared, the total amount of the dividend is debited to the Common Stock account.

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Definitions:

Sharpe Ratio

A measure that indicates the average return minus the risk-free return, divided by the standard deviation of return on an investment, used to understand the return of an investment compared to its risk.

Treynor Measure

A financial metric used to assess the returns of an investment compared to its risk, specifically accounting for systematic risk with the market as a benchmark.

Jensen Alpha

A performance metric that represents the average return on a portfolio or investment above or below that predicted by the capital asset pricing model (CAPM), based on the market risk.

Performance

The evaluation of the returns provided by an investment over a certain period in relation to its risk.