(For all students in the Program)
Except for those studying the Statistics and Financial 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 singlecounted within the minor and are not used to fulfill any other requirements for graduation except the 120credit degree requirement. Courses used to fulfill the requirements of the Minor Program in Mathematics cannot be reused to count towards this Minor Program.
Required Course(s)

Credit(s) attained 
MATH 
Note: Students admitted in 201415 or before who have completed MATH 2411, MATH 2421/MATH 2431, and MATH 3423 may request to use one of the three courses to replace MATH 2511 and the remaining two to fulfill the elective requirement.

3 
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, ISOM 2500, or LIFS 3150;
and MATH 2421/MATH 2431 by ELEC 2600 or ISOM 3540.) 
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 Credibility Theory 
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 
4825 
Special Topics in Actuarial Mathematics 
3 
RMBI 
4220* 
Life Contingencies Models and Insurance Risk 
3 
* Colisted courses
Overall Structure
 1 required course
 2 foundation courses selected from a list of 3 Foundation Elective
 3 advanced courses selected from a list of 6 Advanced Elective
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.
This course also prepares students to take the Exam FM (Financial Mathematics) of the Society of Actuaries and the Exam 2 (Financial Mathematics) of the Casualty Actuarial Society.
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 1018 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): ELEC 2600, ELEC 2600H, ISOM 3540
Prerequisite(s): IELM 2510 OR ISOM 2500 OR LIFS 3150 OR MATH 2411
Corequisite(s):MATH 2010 OR MATH 2011 OR MATH 2021 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 (IELM 2510 OR ISOM 2500 OR LIFS 3150 OR MATH 2411)
Corequisite(s):MATH 2010 OR MATH 2011 OR MATH 2021 OR MATH 2023 
MATH 3423 
Statistical Inference 
[3 Credit(s)] 
Sampling theory, order statistics, limiting distributions, point estimation, confidence intervals, hypothesis testing, nonparametric 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 semiparametric proportional hazards regression model; and multivariate survival analysis.
This course also prepares students to take the Exam C (Construction and Evaluation of Actuarial Models) of the Society of Actuaries and the Exam 4 (Construction and Evaluation of Actuarial Models) of the Casualty Actuarial Society.
Prerequisites: MATH 3423 
MATH 4427 
Loss Models and Credibility Theory 
[3 Credit(s)] 
This course covers the construction of casualty loss models and credibility theory. The topics discussed in this course include severity models, frequency models, aggregate models, coverage modifications, loss elimination ratios, effect of inflation on losses, risk measures, limit fluctuation credibility, Bayesian credibility models for discrete and continuous models, Buhlman and BuhlmanStraub credibility models, conjugate priors in Bayesian analysis, and empirical Bayesian methods in nonparametric and semiparametric models.
The course also prepares students to take the Exam C (Construction and Evaluation of Actuarial Models) of the Society of Actuaries and the Exam 4 (Construction and Evaluation of Actuarial Models) of the Casualty Actuarial Society.
Prerequisite: (ELEC 2600 OR ISOM 3540 OR MATH 2421 OR MATH 2431) AND (MATH 2010 OR MATH 2011 OR MATH 2021 OR MATH 2023) AND MATH 2511 
MATH 4511 
Quantitative Methods for Fixed Income Derivatives 
[3 Credit(s)] 
Random walk models for asset price and interest rate processes. Risk neutral valuation principle, binomial model. Lattice tree algorithms for pricing options. Monte Carlo simulation techniques. Yield curve fitting, noarbitrage interest rate models. Pricing algorithms for embedded features in fixed income instruments.
Prerequisite(s): (MATH 2010 / MATH 2011 / MATH 2021 / MATH 2023) AND (MATH 2111 / MATH 2121 / MATH 2131 / MATH 2350) AND (IELM 2510 / 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; meanvariance formulation of portfolio choices of risky assets; Twofund theorem and Onefund 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 2010 / MATH 2011 / MATH 2021 / MATH 2023) AND (MATH 2111 / MATH 2121 / MATH 2131 / MATH 2350) AND (IELM 2510 / ISOM 2500 / LIFS 3150 / MATH 2411) AND (FINA 2203 / FINA 2303) 
MATH 4513 / RMBI 4220 
Life Contingencies Models and Insurance Risk 
[3 Credit(s)] 
This is an undergraduatelevel onesemester course on life contingencies models and insurance risk. The topics discussed in this course include survival models, life tables and selection, insurance benefits, annuities, premium calculation, and insurance policy values.
The course also prepares students to take the Exam MLC (Models for Life Contingencies) of the Society of Actuaries and the Exam 3L (Models for Life Contingencies and Statistics) of the Casualty Actuarial Society.
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. The course also prepares students to take the Exam MFE (Models for Financial
Economics) of the Society of Actuaries.
Exclusion(s): FINA 3203, FINA 3203H
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 CoxIngersollRoss bond pricing models, BlackDermanToy binomial model, Ito's formula, BlackScholes option pricing model, exotic options, variance reduction methods in simulation, and deltahedging.

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 fill out the
"Declaration of Undergraduate Minor Program Form" (RR37) and submit to the MATH general office Rm.3461 together with an unofficial transcript. 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.
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 
Credit Transfer Arrangement
For credit transfer, students can transfer a maximum total of 6 credits to the Minor Program.
Applications must be submitted to the Minor Department no later than one month after student's
enrollment in the Minor Program; or following student's return to study from exchange at HKUST.
Late applications will not be considered.
For students under the 3year degree, they should fill out the "Application for Credit Transfer Form" (GR14).
For students under the 4year degree, they should fill out the "Application for Credit Transfer Form" (GR21).
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.
Enquiries
Prof. ManYu Wong (Coordinator of Minor in Actuarial Mathematics)
Office: Room 3431 (Lifts 2526)
Email: mamywong@ust.hk
Tel: 23587436
