Allstate Insurance Has Mostly Ditched Its Famous "In Good Hands

question 28

Multiple Choice

Allstate Insurance has mostly ditched its famous "in good hands" ads in favor of a character called "Mayhem," who shows up in your life at random - and trashes it.What kind of advertising appeal were these ads using?

• A) fear
• B) consequences
• C) health
• D) vanity and egotism
• E) consciousness

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Definitions:

Bond

A fixed income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental) which pays periodic interest payments and the return of the principal at maturity.

Risk Premiums

The extra return or premium demanded by investors for holding riskier assets, above the risk-free rate.

Nominal Risk-Free Rate

The rate of return on an investment with no risk of financial loss, not adjusted for inflation.

Yield Curve

A curve representing the yields of bonds with the same creditworthiness but varying expiration dates, measured at a specific moment.