Actuarial Science

Course Description

Dive into the world of financial mathematics and unlock the power of money over time. This course equips students with advanced mathematical skills to navigate complex financial landscapes. Master the art of calculating the time value of money, analyzing investment opportunities, and understanding the intricacies of loans and bonds. Explore yield curves, portfolio management, and asset-liability matching techniques used by financial professionals. Gain hands-on experience with real-world applications in investment analysis, capital budgeting, and risk management. Upon completing this course, students will be able to navigate financial decisions confidently and strategically in an ever-evolving economic landscape. Prerequisite: ECON 100 and MATH 136 or MATH 151 or ECON 375

Prerequisites

ECON 100 and MATH 136 or MATH 151 or ECON 375

Credits

1 course

Spring Semester information

331A: Financial Mathematics

Professor: Zhixin Wu

Course Description

This is a problem-solving seminar. The problems discussed in the seminar provide students with a better understanding of the actuarial field by exposing students to the professional application of actuarial science and by providing resources for students taking actuarial exams. Techniques and strategies for solving difficult problems are also introduced in the seminar. The seminar also includes an introduction of financial instruments, the determinants of interest rates, an alternative way to approximate the effect of change in interest rates, and interest rate swaps. This course is of great assistance for students who are preparing for the actuarial exam Financial Math. Prerequisite: MATH 331 which may be taken concurrently.

Prerequisites

MATH 331 which may be taken concurrently.

Credits

1/2 course

Spring Semester information

332A: Seminar in Financial Math

Professor: Zhixin Wu

Course Description

(Cross-listed with MATH 336) This course in Quantitative Risk Analysis provides students with a comprehensive interdisciplinary foundation in quantitative techniques for financial risk assessment and management. The curriculum encompasses the principles of fixed-income securities, Modern Portfolio Theory (MPT) and advanced topics like the Black-Scholes formula and the Binomial Tree method for derivatives pricing. The course emphasizes practical skills in identifying, calculating, and mitigating risks associated with fixed-income securities, equities, options, and futures. Students will work on projects that simulate real-world scenarios, gaining experience in managing the interest rate risk of fixed-income securities by controlling durations, applying MPT to create efficient portfolios, using stock index futures to manage market exposure, and leveraging stock options to hedge individual stock risks. Prerequisite: MATH 136 or MATH 151 or ECON 375, ECON 100, and either MATH 141 or ECON 350.

Prerequisites

Math 136 or MATH 151 or ECON 375, Econ 100, and either MATH 141 or ECON 350

Credits

1 course

Course Description

Probability, sample spaces and events, discrete and continuous random variables, density and their distributions, including the binomial, Poisson and normal. Prerequisite: MATH 152 and MATH 223.

Prerequisites

MATH 152 and MATH 223

Credits

1 course

Fall Semester information

441A: Probability

Professor: Zhixin Wu

Course Description

The seminar will include the topics of multivariate distributions, order statistics, the law of large numbers, basic insurance policies, frequency of loss, frequency distribution, severity, severity distribution, characteristics of an insurable risk, measurement of risk, economics risk, expected value of loss, loss distribution, premium payment, claim payment distribution, limits on policy benefit (deductible, maximum, benefit limits) and role of actuaries. After studying, students will be able to demonstrate a solid foundation in probability by their ability to solve a variety of basic and advanced actuarial practical problems. Prerequisite: MATH 441 which may be taken concurrently.

Prerequisites

MATH 441 which may be taken concurrently

Credits

1/2 course credit

Fall Semester information

442A: ProbabilityProblmSeminar

Professor: Zhixin Wu

Course Description

This senior capstone course emphasizes group work and discussions, allowing students to apply actuarial models, risk analysis techniques, and risk management strategies to various insurance domains, including Auto, Health, Life, and Property & Casualty, etc. Students will collaborate in groups on projects utilizing public data from the Society of Actuaries, Casualty Actuarial Society, and other industry resources to model, price insurance products, mitigate risks through risk identification, assessment, and control measures, and develop risk management plans. Through these projects, students will leverage statistical, analytical, and data analytics methods to conduct research on real-world datasets, gaining practical experience in addressing complex actuarial, risk management, and risk financing challenges while enhancing problem-solving, teamwork, communication, and risk management skills essential for future careers in the insurance and financial industry. Prerequisite: MATH/BUS 331 or MATH/BUS 336, MATH 441, and one upper-level statistics course from the list (MATH 341, MATH 348, BUS 305, ECON 385, ECON 450, FIN 451).

Prerequisites

MATH/BUS 331 or MATH/BUS 336, MATH 441, and one upper-level statistics course from the list (MATH 341, MATH 348, BUS 305, ECON 385, ECON 450, FIN 451)

Credits

1 course

Spring Semester information

494A: Actuarial Science Case Studies

Professor: Zhixin Wu