Skip to Content

Stochastic Methods in Finance and Insurance - ACST601

This unit covers applications of probability theory to life insurance, general insurance and finance. Topics include: conditional probability; Bayes Theorem; discrete and continuous random variable and distributions, with examples in insurance and finance; mathematical expectation with applications to insurance and finance; measures of variation and risk; moments and their interpretation; sums of independent random variables; discrete and continuous convolutions with applications; distribution of functions of random variables; probability generating functions, moment generating functions and characteristic functions; the central limit theorem; multivariate random variables and normal distribution theory; marginal and conditional distributions; covariance and correlation; and compound distributions.

Credit Points: 4
When Offered:

TBD - Not offered in the current year; next offering is to be determined

Staff Contact(s): Actuarial staff

Admission to MActPrac or MCom or MAcc(Prof)MCom or MBioTechMCom Prerequisite Information


Unit Designation(s):
Assessed As: Graded
Offered By:

Department of Actuarial Studies and Business Analytics

Faculty of Business and Economics

Course structures, including unit offerings, are subject to change.
Need help? Ask us.