Week 4

Overview #

This week, we will cover the following topics:

• Actuarial Practice:
  • Professionalism and Actuaries
  • Guest lecture with Jessica Leong, President of the CAS
• Actuarial Techniques:
  • Applications of compound interest to Bonds and Loans

Note that in the video below I go over the difference between simple and compound interest again!

If you wish to watch the embedded videos from Lecture Capture, you need to have logged in and entered Lecture Capture via Canvas once for each session. This is to restrict access to students enrolled at the University of Melbourne only.

See also detailed learning outcomes for this week.

Main references and lectures #

Actuarial Practice #

Read: Professionalism and Actuaries

• Note that Sections 1 and 3 are self-study and won’t be the object of another pre-recorded lecture. Section 1 should be read before the guest lecture, and Section 3 will reinforce discussions of the guest lecture.

Annotate: slides

Watch:

If you wish to watch the embedded videos from Lecture Capture, you need to have logged in and entered Lecture Capture via Canvas once for each session. This is to restrict access to students enrolled at the University of Melbourne only.

Actuarial Techniques #

Time Value of Money - Bonds and Loans #

Read: Time Value of Money - Bonds and Loans

Annotate: slides annotated slides from the pre-recorded lecture spreadsheet from the pre-recorded lecture

Watch:

If you wish to watch the embedded videos from Lecture Capture, you need to have logged in and entered Lecture Capture via Canvas once for each session. This is to restrict access to students enrolled at the University of Melbourne only.

Additional preparation and resources #

Mandatory #

1. Have a look at the "International Actuarial Association" website
2. Read the Actuaries Institute code of conduct
3. Have a look at IAA ISAPs
4. Australian Actuaries Climate Index (for instance, Communication under ISAP 1)
5. Download and watch the movie "Billion Dollar Bubble"

Optional #

1. Read Section 2.3 of Atkinson and Dickson (2011).
2. Wikipedia article about HIH debacle
3. Recent BBC artice about Equitable Life
4. David Li and the GFC
5. Natural justice and procedural fairness

Tutorials #

The document will all questions and solutions is available here: Tutorial set.

Note that solutions will be gradually added to that same document. Hence it is not recommended to print it, as it will regularly change (typos will also dynamically be corrected).

This week #

This week, tutorials will focus on compound interest ( week 3 materials).

Note that due to the COVID-19 restrictions in Victoria, all tutorials will be on Zoom; follow the links under Zoom on Canvas.

Here the recording available for Week 4:

If you wish to watch the embedded videos from Lecture Capture, you need to have logged in and entered Lecture Capture via Canvas once for each session. This is to restrict access to students enrolled at the University of Melbourne only.

Next week (week 5) #

Next week, we will discuss the week 4 set of “tutorial questions” (chapter 5). Solutions will be made available at the end of the week (5).

Later (week 6+) #

After next week (week 6+), you should do the “review questions” for week 4. Solutions will be available at the end of week 6.

Additional questions #

The “additional questions” are here for reinforcement or revision, but are not the main focus of the tutorials. Solutions for those exercises are already available.

Preparation for assessment #

Participation and Yellowdig (10%) #

• Connect to Yellowdig, ask questions, help others

Mid-semester (10%) and final (70%) exams #

• Finalise your own summary for week 2’s technical topics, as well as practice discussions
• Draft your own summary for week 3’s technical topics, as well as practice discussions

Assignment (10%) #

• Nothing to do for now.

References #