If You Want to Apply for Federal Aid, How Often

question 11

Multiple Choice

If you want to apply for federal aid, how often must you complete the Free Application for Federal Student Aid (FAFSA) ?

• A) every term
• B) every year
• C) only when you are also taking out a student loan
• D) only the first time you apply for financial aid

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Definitions:

Risk Premium

The additional return expected by an investor for holding a risky asset over a risk-free asset, compensating for the higher risk.

Common Stocks

Equity securities that represent ownership in a corporation, giving the holder voting rights and a share of the company's profits via dividends.

Treasury Bonds

Long-term government securities issued with the purpose of financing government spending and are seen as low-risk investments.

Treasury Bills

Short-term government securities issued at a discount from their face value, with maturities ranging from a few days to 52 weeks.