units

ETC3530

Faculty of Business and Economics

18 September 2017 22 December 2024

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This unit entry is for students who completed this unit in 2016 only. For students planning to study the unit, please refer to the unit indexes in the the current edition of the Handbook. If you have any queries contact the managing faculty for your course or area of study.

Monash University

6 points, SCA Band 3, 0.125 EFTSL

Undergraduate - Unit

Refer to the specific census and withdrawal dates for the semester(s) in which this unit is offered.

Faculty

Business and Economics

Organisational Unit

Department of Econometrics and Business Statistics

Coordinator(s)

Associate Professor Colin O'Hare

Offered

Clayton

  • Second semester 2016 (Day)

Synopsis

The modelling and valuation of cash flows dependent on death, survival, or other uncertain risks.

Outcomes

The learning goals associated with this unit are to:

  1. calculate, using ultimate or select mortality, net premiums and net premium reserves for increasing and decreasing benefits and annuities
  2. develop techniques for the valuation of annuity and assurance products involving two lives, and the use of actuarial functions in that situation
  3. develop methods which can be used to model cash flows contingent upon competing risks
  4. use the technique of discounted emerging costs as used in profit tests, pricing assessments and reserving calculations for various insurance and pension products
  5. address practical issues such as guarantees and options, risk classification and the effects of the pricing and reserving basis on the emergence of profit.

Assessment

Within semester assessment: 20%
Examination: 80%

Workload requirements

Minimum total expected workload to achieve the learning outcomes for this unit is 144 hours per semester typically comprising a mixture of scheduled learning activities and independent study. Independent study may include associated readings, assessment and preparation for scheduled activities. The unit requires on average three/four hours of scheduled activities per week. Scheduled activities may include a combination of teacher directed learning, peer directed learning and online engagement.

See also Unit timetable information

Chief examiner(s)

Associate Professor Colin O'Hare

Prerequisites

AFC2340 or ETC2430 or BFC2340 or by permission.