More About HKUST






(For all students in the Program)

Except for those studying the Financial and Actuarial Mathematics Track of the BSc program in Mathematics, any undergraduate student with an overall CGA of 1.85 or above may enroll in the Actuarial Mathematics Minor Program. Students must declare their intention to enroll in the Minor Program no earlier than the first regular term of their second year of study but no later than the last day of the add/drop period in the first regular term of their final year of study. Students who wish to withdraw from the Minor Program should apply before the last day of the add/drop period in the first regular term of their final year of study.

Minor Requirements

To graduate with a minor in Actuarial Mathematics, students must have enrolled in the Minor Program, complete a minimum total of 18 credits and all of the minor requirements, as well as the requirements of the major program of study; and have attained an average grade point of at least 1.5 in courses taken within the minor program.

For credit transfer, students can transfer a maximum total of 6 credits to the Minor Program. Courses accepted for credit transfer must normally be at a level equivalent to courses coded above 1600.

Out of the total credits required by the minor program, at least 9 credits should be single-counted within the minor and are not used to fulfill any other requirements for graduation except the 120-credit degree requirement. Courses used to fulfill the requirements of the Minor Program in Mathematics cannot be reused to count towards this Minor Program.

Students may use no more than 6 credits earned from courses offered in self-paced online delivery mode to satisfy the graduation requirements of a degree program. This 6-credit limit does not apply to credits obtained through the credit transfer procedures of the University.


Required Course(s)

Credit(s)
attained
MATH 2511 Fundamentals of Actuarial Mathematics 3

Elective(s)

Minimum
credit(s)
attained
MATH Actuarial/Mathematics Electives (5 courses from the 15 specified elective list, of which 2 courses must be taken from the list of Foundation Electives and 3 courses from the list of Advanced Electives)

15
List 1 - Foundation Electives
(Students may request to replace MATH 2411 by IELM 2510, IEDA 2540, ISOM 2500, or LIFS 3150;
and MATH 2421 by ELEC 2600, ISOM 3540, or IEDA 2520.)

MATH 2411 Applied Statistics 4
MATH 2421 Probability 4
MATH 2431 Honors Probability 4
MATH 3423 Statistical Inference 3

List 2 - Advanced Electives

MATH 4426 Survival Analysis 3
MATH 4427 Loss Models and their Applications 3
MATH 4428 Bayesian Analysis and Credibility Theory 3
MATH 4429 Credibility Theory and its Applications 3
MATH 4511 Quantitative Methods for Fixed Income Derivatives 3
MATH 4512 Fundamentals of Mathematical Finance 3
MATH 4513* Life Contingencies Models and Insurance Risk 3
MATH 4514 Financial Economics in Actuarial Science 3
MATH 4515 Statistical and Computational Methods in Financial Mathematics 3
MATH 4825 Special Topics in Actuarial Mathematics 3
RMBI 4220* Life Contingencies Models and Insurance Risk 3

* Co-listed courses

Overall Structure

  • 1 required course
  • 2 foundation courses selected from List 1 - Foundation Electives
  • 3 advanced courses selected from List 2 - Advanced Electives
Background in calculus and multivariable calculus would be beneficial to students' study but not essential for admission

Required Course(s)

MATH 2511

Fundamentals of Actuarial Mathematics  

[3 Credit(s)]

This course covers the fundamental concepts of actuarial financial mathematics and how these concepts are applied in calculating present and accumulated values for various streams of cash flows. The topics covered include interest rates, present value, annuities valuation, loan repayment, bond and portfolio yield, bond valuation, rate of return, yield curve, term structure of interest rates, duration and convexity of general cash flows and portfolios, immunization, stock valuation, capital budgeting, dynamic cash flow processes, and asset and liability management.
Prerequisite: MATH 1003 OR MATH 1014 OR MATH 1020 OR MATH 1024


Foundation Elective Courses

MATH 2411

Applied Statistics

[4 Credit(s)]

A systematic introduction to statistical inference, including the necessary probabilistic background, point and interval estimation, hypothesis testing.
Exclusion(s): IELM 2510, ISOM 2500, LIFS 3150
Prerequisite(s): A passing grade in AL Pure Mathematics / AL Applied Mathematics OR MATH 1014 OR MATH 1020 OR MATH 1024


MATH 2421

Probability

[4 Credit(s)]

Sample spaces, conditional probability, random variables, independence, discrete and continuous distributions, expectation, correlation, moment generating function, distributions of function of random variables, law of large numbers and limit theorems.
Exclusion(s): IEDA 2520, MATH 2431, ELEC 2600, ELEC 2600H, ISOM 3540
Prerequisite(s): MATH 1014 OR MATH 1020 OR MATH 1024
Corequisite(s):MATH 2011 OR MATH 2023


MATH 2431

Honors Probability

[4 Credit(s)]

This is an honors undergraduate course in probability theory. Topics include probability spaces and random variables, distributions (absolutely continuous and singular distributions) and probability densities, moment inequalities, moment generating functions, conditional expectations, independence, conditional distributions, convergence concepts (weak, strong and in distribution), law of large numbers (weak and strong) and central limit theorem. Some rigorous theoretical results in probability will be discussed.
Exclusion(s): ELEC 2600, ELEC 2600H, ISOM 3540, MATH 2421
Prerequisite(s): (Grade A- or above in MATH 1014) OR MATH 1020 OR MATH 1024
Corequisite(s):MATH 2011 OR MATH 2023


MATH 3423

Statistical Inference

[3 Credit(s)]

Sampling theory, order statistics, limiting distributions, point estimation, confidence intervals, hypothesis testing, non-parametric methods.
Prerequisite(s): MATH 2421 OR MATH 2431

Advanced Elective Courses

MATH 4426

Survival Analysis

[3 Credit(s)]

The topics discussed in this course include basic quantities like hazard rate function, survival function, censoring and/or truncation; parametric estimation of the survival distribution by maximum likelihood estimation method; nonparametric estimation of the survival functions from possibly censored samples; parametric regression models; Cox's semi-parametric proportional hazards regression model; and multivariate survival analysis.
Prerequisites: MATH 3423


MATH 4427

Loss Models and their Applications

[3 Credit(s)]

This course covers the construction of casualty loss models and their applications to insurance. Topics include severity models, frequency models, aggregate loss models, coverage modifications, effect of inflation on losses, risk measures, parameter and variance estimation in loss models, and construction of empirical models.


Prerequisite: (ELEC 2600 OR ISOM 3540 OR MATH 2421 OR MATH 2431) AND (MATH 2011 OR MATH 2023) AND MATH 2511


MATH 4428

Bayesian Analysis and Credibility Theory

[3 Credit(s)]

This course provides a rigorous mathematical treatment of Bayesian analysis and its applications to credibility theory. The first part covers basic concepts and principles of Bayesian statistics such as prior and posterior distributions, conjugate priors, Bayesian estimates, credibility intervals, and Bayesian hypothesis testing. The second part introduces credibility theory and its development using a Bayesian analysis. Topics include limited fluctuation credibility theory, greatest accuracy credibility theory, credibility premium, Buhlmann models, Buhlmann-Straub models, empirical Bayesian methods in nonparametric and semiparametric cases, and the insurance problem.
Prerequisite: MATH 3423 OR MATH 4427


MATH 4511

Quantitative Methods for Fixed Income Derivatives

[3 Credit(s)]

Bond, bond markets and interest-rate derivatives markets. Yields, forward rate and swap rates. Yield-based risk management and regression-based hedging. Mortgage mathematics. Binomial models for equity and fixed-income derivatives. Arbitrage pricing and risk-neutral valuation principle. Eurodollar futures. Lognormal models and Black formula for caps and swaptions.
Prerequisite(s): (MATH 2011 / MATH 2023) AND (MATH 2111 / MATH 2121 / MATH 2131 / MATH 2350) AND (IEDA 2520 AND IEDA 2540 / ISOM 2500 / LIFS 3150 / MATH 2411) AND (FINA 2203 / FINA 2303)


MATH 4512

Fundamentals of Mathematical Finance

[3 Credit(s)]

Duration and horizon rate of return, bond portfolio management and immunization; mean-variance formulation of portfolio choices of risky assets; Two-fund theorem and One-fund theorem; asset pricing under the capital asset pricing models and factor models; investment performance analysis; utility optimization in investment decisions; stochastic dominance.
Prerequisite(s): (MATH 2011 / MATH 2023) AND (MATH 2111 / MATH 2121 / MATH 2131 / MATH 2350) AND (IEDA 2540 / ISOM 2500 / LIFS 3150 / MATH 2411) AND (MATH 2511 / FINA 2203 / FINA 2303)


MATH 4513 / RMBI 4220

Life Contingencies Models and Insurance Risk

[3 Credit(s)]

The topics discussed in this course include survival models, life tables and selection, insurance benefits, annuities, premium calculation, and insurance policy values.
Prerequisites: ELEC 2600 OR ISOM 3540 OR MATH 2421 OR MATH 2431


MATH 4514

Financial Economics in Actuarial Science

[3 Credit(s)]

The course aims to study some actuarial models and their applications in derivative pricing and financial risk management. Topics include introduction to various derivatives such as forward, futures, European/ American options, exotic options and interest rate derivatives, uses of various options strategies in portfolio management, pricing options using binomial tree model, Black‐Scholes formula for option pricing and its extension, Options Greeks and their applications in hedging, use of Monte Carlo simulation in options pricing, pricing of interest rate derivatives using the Black‐Derman‐Toy tree.
Exclusion(s): FINA 3203
Prerequisite(s): (MATH 2421 / MATH 2431) AND MATH 2511


MATH 4825

Special Topics in Actuarial Mathematics

[3 Credit(s)]

The course discusses one or two of the following three advanced subjects in actuarial mathematics: (1) advanced life contingencies models, (2) advanced casualty loss models, and (3) advanced financial economics. Based on the specific subjects chosen by the instructor, the topics covered in the course may include: (1) multiple state models, pension mathematics, interest rate risk, and emerging costs for traditional life insurance; (2) estimation of failure time and loss distribution using nonparametric methods, estimation of parameters of failure time and loss distribution with censored and/or truncated data, the acceptability of a fitted model, model comparison, and bootstrap methods; (3) Vasicek and Cox-Ingersoll-Ross bond pricing models, Black-Derman-Toy binomial model, Ito's formula, Black-Scholes option pricing model, exotic options, variance reduction methods in simulation, and delta-hedging.


Application Procedures

They must declare their intention to enroll in the minor program no earlier than the first regular term of their second year but no later than the last day of the add/drop period in the first regular term of their final year# of study.

Interested students should submit an Application for Undergraduate Minor Program e-Form together with the following documents:

  • an unofficial transcript
  • a study plan for the minor program and indicate which courses count toward the 9 single-counted credits.

Confirmation letter will not be issued to successful applicants. ARRO will update a status of Minor Program in the SIS after the corresponding application deadline.

# The "final year of study" means the final year of study within the normal duration of study. The extended semester(s) is not regarded as within the normal duration.

Enrollment Schedule of Minor Programs

Effective Term Enrollment Deadline
Fall Term Last day of Add/ Drop Period of Fall Term*
Spring Term Last day of Add/ Drop Period of Spring Term

* Final-year students who intend to declare minor program should do it no later than this enrollment period. The above schedule also applies to withdrawal from the minor program.


Credit Transfer Arrangement

For credit transfer (from the exchange program), students can transfer a maximum total of 6 credits to the Minor Program.

Students can apply for credit transfer with courses completed at local and overseas tertiary institutions via the online Credit Transfer Application System. Before initiating any application, students are strongly advised to check the approved mappings from the Credit Transfer Database (For Institutional Courses), and consult their School or major Department for advice on equivalence HKUST course.

For credit transfer cases, only credits and not grades will be transferred to HKUST and transfer credits will not be included in the calculation of grade averages.


HKUST courses for VEE requirements


Enquiries

Dr. Chi-Man Leung (Coordinator of Minor in Actuarial Mathematics)
Office: Room 3419 (Lifts 17-18)
E-mail: chimanleung@ust.hk
Tel: 2358-8571