Risk Theory II
Subject ACTL40003 (2014)
Note: This is an archived Handbook entry from 2014.
Credit Points:  12.50 

Level:  4 (Undergraduate) 
Dates & Locations:  This subject is not offered in 2014. 
Time Commitment:  Contact Hours: Three hours of lectures and/or tutorials per week Total Time Commitment: Not available 
Prerequisites:  The following: Subject Study Period Commencement: Credit Points: 
Corequisites:  None 
Recommended Background Knowledge:  Please refer to Prerequisites and Corequisites. 
Non Allowed Subjects:  None 
Core Participation Requirements: 
For the purposes of considering requests for Reasonable Adjustments under the Disability Standards for Education (Cwth 2005), and Students Experiencing Academic Disadvantage Policy, academic requirements for this subject are articulated in the Subject Description, Subject Objectives, Generic Skills and Assessment Requirements for this entry. The University is dedicated to provide support to those with special requirements. Further details on the disability support scheme can be found at the Disability Liaison Unit website: http://www.services.unimelb.edu.au/disability/ 
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Subject Overview: 
Topics include premium principles, including variance principle, Esscher principle, risk adjusted principle; applications of utility theory, premium calculation and optimal reinsurance retention levels; reinsurance problems; ruin theory, Lundberg's inequality, explicit solutions for the probability of ultimate ruin, application of Panjer's recursion formula, the probability and severity of ruin, the effect of reinsurance on ruin probabilities. 

Learning Outcomes: 

Assessment:  A 50minute midsemester test (20%) and a 2hour endofsemester examination (80%). 
Prescribed Texts:  You will be advised of prescribed texts by your lecturer. 
Recommended Texts:  Information Not Available 
Breadth Options:  This subject is not available as a breadth subject. 
Fees Information:  Subject EFTSL, Level, Discipline & Census Date 
Generic Skills: 

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