1 2ProbabilitySOA Exam P

Mathematics of Investment and Credit is a thorough treatment of the theory of interest, and its application to a wide variety of financial instruments. It emphasizes a direct-calculation approach to reaching numerical results, and uses a gentle, thorough pedagogic style.

This text includes extensive treatments of the term structure of interest rates, forward contracts of various types, interest rate swaps and financial options and option strategies. The fifth edition includes expanded coverage of the more recently developed concepts of forwards, futures, swaps and options. Key formulas and definitions are highlighted and the exercises increase in difficulty as you progress through each section. Real world current events are included to demonstrate key concepts. The text contains a large number of worked examples and end-of-chapter exercises.

Probability for Risk Management was written to prepare students for actuarial Examination P. It covers all of the required learning objectives on the syllabus for this exam and many students have used it to prepare for and pass that exam. The text has 439 exercises at the level of Exam P, including 110 old exam questions.

Since the content of Exam P is so widely applicable in modern risk management, Probability for Risk Management also can be used for a wider audience including students of mathematical economics, finance and risk management as well as actuarial students.

This textbook is easy to read, follow and understand-and occasionally funny. It has been used successfully in classes containing a mix of students from actuarial science and business.

FinancialMathematicsSOA Exam FM

Models for Quantifying Risk presents a variety of stochastic models for the actuary to use in undertaking the analysis of risk. It is designed to be appropriate for use in a two or three semester university course in basic actuarial science. It was also written with the SOA Exam MLC and CAS Exam LC in mind. Models are evaluated in a generic form with life contingencies included as one of many applications of the science.

Students will find this book to be a valuable reference due to its easy-to-understand explanations and large selection of end-of-chapter exercises.

There are five areas of expanded content due to the revised Learning Objectives for the SOA’s Exam MLC. Material has been added to address the notion of interest rate risk and new applications for the concept of reserves. Additional emphasis has been placed on representing various actuarial models as multi-state models, using the mathematics of discrete-time and/or continuous-time Markov Chains, as well as the use of simulation techniques. The new edition also contains a brief presentation of more recently introduced insurance coverages and profit testing.

SOAApproved Reference

SOA & CASApproved Reference

SOAApproved Reference

SOA & CASApproved Reference

3 ActuarialModels

SOA Exam MLCCAS Exam LC

Solutions Manuals, available separately for all six books, present complete solutions to the end-of-chapter exercises.

Matthew J. Hassett, Ph.D.Donald G. Stewart, Ph.D.

Mathematics of Investment and Credit 5th Edition

Models for Quantifying Risk 5th Edition

Probability for Risk Management 2nd Edition

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About the TextThis textbook differs from most intermediate probabilitytexts in that it focuses the theory directly on applications in the general field of financial risk management, including insurance, economics, and finance. It will be appropriate for a first course in probability.

About the Authors

Matthew J. Hassett is professor emeritus of mathematics at Arizona State University where he taught from 1966 to 1999. He worked in industry as a health actuary from 1999 to 2005, and then returned to Arizona State to continue working with actuarial students. He has published papers in mathematical logic, mathematics education, finance and actuarial science. Dr. Hassett has co-authored an introductory statistics textbook and the ACTEX study guide for Exam M of the Society of Actuaries. He has consulting experience in mathematical analysis of mortgage-backed securities and their derivatives. Dr. Hassett is an Associate of the Society of Actuaries.

Donald G. Stewart is professor emeritus of mathematics at Arizona State University, following a career of 34 years. His original research interests were in topology. Since 1994, Dr. Stewart has worked with actuarial students at ASU. He also participated in the creation of the ASU televised course in Survival Models. Dr. Stewart has extensive experience inproviding analysis for expert witnesses. Dr. Stewart has co-authored the ACTEX study manual for Exam M of the Society of Actuaries.

ACTEX A CA d E m i C S E r i E S

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ACTEX PublicationsWinsted, CT 06098www.ActexMadRiver.com

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Samuel A. Broverman, Ph.D., ASA Robin Cunningham, Ph.D., FSAThomas N. Herzog, Ph.D., ASARichard L. London, FSA

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This text is a thorough treatment of the theory of interest, and its application to a wide variety of financial instruments. It emphasizes a direct-calculation approach to reaching numerical results, and uses a gentle, through pedagogic style. This edition expands on the treatments of forward contracts of various types, swaps and financial options, and option strategies. The text contains a large number of worked examples and end-of-the chapter exercises.

ACTEX PublicationsWinsted, CT 06098www.ActexMadRiver.com

5thE

dition

About the text

Mathematicsof Investment and Credit

SAmuEl A. BrovErmAn, Phd, ASA

5thEdition

Sam Broverman completed a PhD degree in mathematics at the University of Manitoba in 1976. He has been a faculty member of the University of Toronto since 1980, where he holds the position of Professor of Actuarial Science. He was a faculty member of the University of Texas at Austin School of Business from 1978 to 1980. Professor Broverman has written educational material and conducted review classes for many of the actuarial exams over the past 30 years. He has a wide range of international teaching experience, having taught actuarial courses in North and Central America, Europe and the Far East.

About the Author

Probability and Statistics with Applications is an introductory textbook designed to make the subject accessible to college freshmen and sophomores concurrent with their study of calculus.

This textbook is organized specifically to meet the needs of students who are preparing for the Society of Actuaries Examination P. Sample actuarial exam problems are integrated throughout the text along with an abundance of illustrative examples and 799 exercises. Additionally, the chapters on mathematical statistics cover all of the learning objectives for the statistics portion of the Casualty Actuarial Society Exam ST syllabus. Here again, liberal use is made of past exam problems from CAS Exams 3 and 3L. The book provides the content to serve as the primary text for a standard two-semester advanced undergraduate course in mathematical probability and statistics.

Probabilityand Statistics

SOA Exam PCAS Exam ST

Probability and Statistics with Applications: A Problem Solving TextLeonard A. Asimow, Ph.D., ASAMark M. Maxwell, Ph.D., ASA

AC T EX A cA d e m i c S e r i e S

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The Fifth Edition has been designed to meet the expanded content of SOA Exam MLC, which was effective with the May 2012 exam administration, and clarified in August 2012.

This textbook presents a variety of stochastic models for the actuary to use in undertaking the analysis of risk. It is designed to be appropriate for use in a two or three semester university course in basic actuarial science. It was also written with SOA Exam MLC and CAS Exam 3L in mind, and is an endorsed reference for both exams. Models are evaluated in a generic form with life contingencies included as one of many applications of the science. Students will find this book to be a valuable reference due to its easy-to-understand explanations and end-of-chapter exercises.

ACTEX PublicationsWinsted, CT 06098www.ActexMadRiver.com

thEdition

Richard L. (Dick) London, FSA, has taught Actuarial Science at several universities since 1968, and has recently retired as Director of Actuarial Science at the University of Connecticut. He has often taught courses in Life Contingencies throughout his long career. He is the author or coauthor of the following additional texts: Graduation: The Revision of Estimates; Survival Models and Their Estimation; and Risk Models and Their Estimation, with Stephen G. Kellison, FSA.

Thomas N. Herzog, Ph.D., ASA, recently retired from the U.S. Department of Housing and Urban Development where he served many years as the Chief Actuary of the Federal Housing Administration. He has a Sc.B. in Applied Mathematics from Brown University and a Ph.D. in Mathematics, with a major in Statistics, from the University of Maryland. Dr. Herzog is the author or coauthor of the following additional texts: Applications of Monte Carlo Methods to Finance and Insurance; Data Quality and Record Linkage Techniques; and Introduction to Credibility Theory. Dr. Herzog is the winner of the 1990 AERF Practitioner’s Award for a paper on Home Equity Conversion Mortgages, written with Theresa R. DiVenti. Dr. Herzog is also a Fellow of the American Statistical Association.

Robin J. Cunningham, Ph.D., has taught mathematics at both the high school and university level and has worked as a test developer for Educational Testing Service. He has been in actuarial work since 1998. Dr. Cunningham was the original co-author (along with Nathan W. Hardiman, FSA) of the Exam M/3 Study Guide that was published by Arch Solutions.

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Construction and Evaluation

of Actuarial Models

Construction and Evaluation

of Actuarial Models

SOA Exam C SOA Exam C

Introduction to Credibility Theory presents a wide variety of credibility models in an easy-to-read style and, in so doing, traces the historical development of the subject. Because the Bayesian approach is emphasized, the book can serve as a useful foundation for practicing actuaries desiring to become proficient in applying Markov chain Monte Carlo methods to solve real-world problems.

The text concentrates on basic statistical concepts, leaving more mathematically sophisticated concepts for a more advanced treatment elsewhere. It contains worked examples, a large number of end-of-chapter exercises and an extensive bibliography.

In the rapidly evolving healthcare environment, facility in the application of state-of-the-art analytic methods is more important than ever. The fourth edition includes three new case studies relating to healthcare issues.

Much of actuarial science deals with the analysis and management of financial risk. In this new text we address the topic of loss models, traditionally called risk theory by actuaries, including the estimation of such models from sample data.

The theory of survival models is addressed in other texts, including the ACTEX work entitled Models for Quantifying Risk which might be considered a companion text to this one. In Risk Models and Their Estimation we consider as well the estimation of survival models, in both tabular and parametric form, from sample data.

At press time, ACTEX had submitted this text for SOA Exam C syllabus adoption. While we are still awaiting a response, several university programs have adopted the book for their courses, confirming our belief that Risk Models and Their Estimation, together with Introduction to Credibility Theory, fully address the learning objectives for this exam.

Introduction to Credibility Theory4th Edition

Risk Models and Their Estimation

Thomas N. Herzog, Ph.D., ASA Stephen G. Kellison, FSA, EA, MAAA Richard L. London, FSA

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