Page 160 - University Bulletin

ACSC253 Actuarial Corporate Finance
Credits: 3 (3,0,0) Prerequisite: ACSC241
This course offers a comprehensive exploration of corporate finance principles, focusing on the
analysis of financial options and the development of strategic frameworks for financial managers.
Through a nuanced examination of net present value, incorporating considerations such as taxes,
uncertainty, and strategic factors, students delve into capital budgeting decisions with a keen
understanding of the interplay between taxes, capital costs, and procurement choices. Key topics
include dividend policy, the Capital Asset Pricing Model (CAPM), and capital market efficiency, all
in pursuit of maximizing firm value. Students gain proficiency in navigating various financial
instruments such as stocks, bonds, and options, alongside essential financial metrics like the price-
to-earnings ratio. The course also covers financing strategies for businesses, encompassing both
short-term and long-term considerations, and explores the principles of financial leverage. By the
course's conclusion, learners emerge equipped with the knowledge and skills to craft robust
financial strategies that optimize firm performance amidst dynamic market conditions.

ACSC361 Actuarial Science Problem Lab I
Credits: 1 (0,0,2) Prerequisite: ACSC241
This course introduces students to the MATLAB Financial Toolbox TM, equipping them with
essential skills for mathematical modeling and statistical analysis of financial data. Students will
learn how to optimize portfolios of financial instruments, considering turnover and transaction
costs. The toolbox facilitates risk assessment, interest rate analysis, equity and interest rate
derivatives valuation, and investment performance measurement. Additionally, through time
series analysis functions and an interactive app, students will be able to perform transformations
and regressions even with missing data, as well as convert between various trading calendars and
daily counting conventions.

ACSC362 Actuarial Science Problem Lab II
Credits: 1 (0,0,2) Prerequisite: ACSC381
This lab aims to provide students with practical experience in computational aspects of actuarial
science within the C++ and Python environments. Building upon foundational knowledge from
Actuarial Mathematical Models I and II, students will explore risk-theoretical and financial analysis
in both life and non-life insurance contexts. The objectives of this lab are twofold: Firstly, to equip
students with the skills necessary to conduct rigorous analysis in actuarial science and related
fields. Secondly, to familiarize students with computational methods through the use of simple
C++ and Python codes. By delving into algorithms central to actuarial computations, students will
gain insight into various aspects of life insurance, including life contingencies calculations and
prospective life tables. Through practical exercises and hands-on learning, students will develop
proficiency in applying computational techniques to real-world actuarial problems.

ACSC363 Enterprise Risk Analysis
Credits: 4 (4,0,0) Prerequisite: STAT219
This course explains what an insurance policy's premium is, as well as an introduction to the
various methods used to calculate it. These include stop-loss reinsurance and building individual
and group risk models to account for the total loss of a portfolio of insurance policies in situations
where the number of claims is known or unknown. Methods for approximation, such as the
normal and normal power approaches, or using the moment generating function, are also
explored, along with alternative techniques like scalar multiplication, power, exponentiation, and
limiting distributions. These techniques can be used to create new distributions from known ones.

148 PSU UNDERGRADUATE BULLETIN