## Actuarial Science: Markov Jump Process Models

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# Actuarial Science

## Black-Scholes model in valuing options

In this article, we will learn about the Black -Scholes model in valuing options. Most people know that their stocks can fall, but if asked to specify the odds, they would most likely blink in puzzlement. Imagine for a moment, that a

## Random Variable and Distribution: The Concept

A random variable is a variable whose value is unknown and uses probabilities to decide its value. For example, if we roll a fair die, we know that each of the values 1, 2, 3, 4, 5 or 6 occurs with a probability of 1/6. Each of the values

## Actuarial Science: Loan Schedule

In return of the loan, we pay some amount of extra money to the lender. When you take a loan from a bank or from anyone, then you pay some percentage of the loan, as interest, for a specified period, annually, monthly, quarterly,

## Actuarial Science: CT8 vs CM2 – A Comparison

In the words of Winston Churchill, “To improve is to change, to be perfect is to change often.” With the same impression in mind, the IFoA has made a drastic change in its curriculum- Making the students’ industry ready at the time when

## Actuarial Science: Unit Linked Contracts

In this article, we will understand what unit-linked contracts are. Have you wished for earning a profit on the premium you pay for your insurance cover? Did you think you could invest in securities while actually buying yourself

## Actuarial Science: Mortality Profits and DSAR

Have you ever wondered how the companies that provide life insurance cover to its’ policyholders protect their own lives? For a company, in order to survive in the market, it must earn enough revenues to make considerable profits. Do

## Project Appraisal: Money-Weighted Rate of Return, Time-Weighted Rate of Return and Linked Rate of…

What do we mean by appraisal?On a lighter note, appraisal is an act of assessing something or someone. Generally, we come across this word with regards to employees’ performance appraisal at workplace. What can be the main motive behind

## Actuarial Science: Cyber Insurance a Challenge for Actuaries

Technology, social media and transactions over the Internet play key roles in how most organizations conduct business and reach out to prospective customers today. Those vehicles also serve as gateways to cyber attacks. Whether launched by

## Should I Pursue an Actuarial Science Degree or Statistics Degree?

If you have recently completed your high school and pursuing Actuarial Science, then you can easily relate to the above question. The key skills required by both the courses are: Strong foundation in MathematicsLogical thinking and the

## Actuarial Science: Capital Asset Pricing Model

The construction of general equilibrium models allows us to determine the relevant measure of risk of any asset and the relationship between expected return and risk for any asset when markets are in equilibrium. CAPM is the simplest