M.S. in Actuarial Science Program at Temple University
Course Descriptions:
AS 5101 Theory of Interest
Prerequisite: Mathematics 2043 or equivalent.
In this course, simple, compound and effective interest functions are analyzed and used in the calculation of present value and future values of various investments. Annuities, loan amortization, and bonds are discussed and techniques for computing their values at various dates are explored.
AS 5102 Actuarial Modeling I
Prerequisite: Actuarial Science 5101
This course introduces the discrete and continuous random variables measuring the future lifetime of a person. Among the topics covered are calculation of the mean, variance and probability functions for these random variables, introduction of a present value random variable measuring the present value of a life insurance and annuity benefit, calculation of premiums for life insurance and annuities using interest rates and calculation of reserves for insurance companies, examining future liabilities and inflow.
AS 5103 Actuarial Modeling II
Prerequisite: Actuarial Science 5102.
This course introduces multiple life functions that require the use of joint probability functions and the calculation of marginal probability distributions. Additional topics include the calculation of mean and variance for these joint random variables and multiple decrement theory. Various topics from Loss Models are also discussed including computation of mixed distributions through compounding of frequency distributions with severity distributions and the calculation of premiums for insurance policies with deductibles, limits and coinsurance.
AS 5104 Actuarial Modeling III
Prerequisite: Actuarial Science 5103.
Estimation and fitting of survival, frequency and severity, and compound distribution loss models; credibility methods.
AS 5105 Actuarial Economics
Prerequisites: permission of the instructor
This course develops the conceptual framework of microeconomics and macroeconomics with some applications in actuarial science. It offers the VEE credit for Economics as required by the Society of Actuary. Topics in microeconomics include interaction between supply and demand, consumer behavior, production choices, different types of competition, factor markets, and market failure. Topics in macroeconomics include business cycles, inflation, unemployment, monetary and fiscal policy, balance of payments, international economics, and economic growth.
AS 5106 Actuarial Corporate Finance
Prerequisites: Accounting 5001 or permission of the instructor
Co-Requisite: Actuarial Science 5101
This course develops the conceptual framework of corporate finance and financial derivative from an actuarial perspective. It prepares students for Exam FM and also offers the VEE credit for corporate finance as required by the Society of Actuary. Topics covered in this course include financial statements, asset valuation, capital budgeting, capital structure, the cost of capital and dividend policy. Financial derivatives, such as forwards, futures, swaps, and options, will be discussed in detail and their application in corporate risk management will be examined.
AS 5107 Advanced Theory of Interest
Prerequisite: Actuarial Science 5101
This course develops the theoretical basis of certain actuarial models and the application of those models to insurance and other financial risks. It prepares students for SOA Exam MFE or CAS Exam 3F. Topics covered in this course include Vasicek and Cox-Ingersoll-Ross bond price models, Black-Derman-Toy binomial model, Black-Scholes option-pricing model, exotic options, Itô’s lemma in the one-dimensional case. Simulation of lognormal stock prices and variance reduction techniques will be discussed and delta-hedging in risk management will be demonstrated.
RMI 5101 Life/Health Insurance and Employee Benefit
Prerequisites: permission of the instructor
This course provides a background of the fundamental development, structure, costs, and processes of non-pension health and welfare plans, and, an examination of the dynamic changes taking place concerning employer-provided employee benefits. Benefits and issues examined include group health plans, disability benefits, and life insurance, including executive life benefits. Developments in managed care such as health maintenance organization (HMO) and preferred provider organization (PPO) networks and programs are examined. Recent developments in work-site health promotion and consumer-driven health plans (CDHPs), including health reimbursement accounts (HRAs) are studied in the course.
RMI 5104 Property and Liability Insurance
Prerequisites: permission of the instructor
This course is designed to review the risk management process in the context of general corporate management for insurance and non-insurance firms. Evolving standards for enterprise risk management provide the context for the course. The course also provides a graduate level overview of the property-liability insurance industry and the risks that are managed within it. The course develops an understanding of firm and industry dynamics, including the legal and regulatory environment.
STAT 8109 Regression, Time Series, and Forecasting
Prerequisite: Statistics 5001 or permission of the instructor.
This intermediate-level course covers regression analysis, time series analysis, and forecasting. The course is application oriented, and standard statistical packages such as MINITAB are introduced and extensively used.