300-334 Financial Mathematics III

Students may not gain credit for both 300-334 Financial Mathematics III and either 306-331 Investments or 333-301 Investments.

300-204 Financial Mathematics II.

This subject introduces actuarial students to stochastic asset liability modelling. It aims to expand the student's knowledge of basic actuarial principles in the fields of investments and asset management. Topics include: utility theory, stochastic dominance, measures of investment risk, portfolio theory, models of asset returns, asset liability modelling, equilibrium models, the efficient markets hypothesis, stochastic models of security prices and Brownian Motion and its application.

• High level of development: written communication; problem solving; statistical reasoning; application of theory to practice; interpretation and analysis.

A 2-hour end-of-semester examination (80%) and up to three assignments totalling not more than 4500 words (20%).