University of Wisconsin-Whitewater s1

University of Wisconsin-Whitewater Curriculum Proposal Form #4A I. Change in an Existing Course

Type of Action (check all that apply)

Course Revision (include course description & former and new syllabus) Grade Basis Contact Hour Change and or Credit Change Repeatability Change Diversity Option Other: General Education Option area: * * Note: For the Gen Ed option, the proposal should address how this course relates to specific core courses, meets the goals of General Education in providing breadth, and incorporates scholarship in the appropriate field relating to women and gender.

Effective Term:

Current Course Number (subject area and 3-digit course number):

Current Course Title:

Sponsor(s): Department(s): College(s):

List all programs that are affected by this change:

If programs are listed above, will this change affect the Catalog and Advising Reports for those programs? If so, have Form 2's been submitted for each of those programs? (Form 2 is necessary to provide updates to the Catalog and Advising Reports) NA Yes They will be submitted in the future

Proposal Information: (Procedures for form #4A)

I. Detailed explanation of changes (use FROM/TO format) FROM: MATH 446 ACTUARIAL MATHEMATICS 3 u This course will discuss the actuarial profession and the insurance industry, provide direction to students wishing to take the first few actuarial examinations, thoroughly cover the theory of interest, and introduce the basic concepts of actuarial mathematics. Prereq: MATH 441 or concurrent registration.

1 TO: MATH 346/546 THEORY OF INTEREST 3 u This course will cover the topics of interest theory listed in the SoA/CAS syllabus for Exam FM/2. Topics include the time value of money, annuities, loans, bonds, general cash flows and portfolios, and immunization schedules. Prereq: MATH 254 with a grade of C or better.

II. Justification for action

Every 5 years or so, the Society of Actuaries (SoA) and the Casualty Actuarial Society (CAS) review and revise the exams taken by future and current actuaries. We are revising this course to reflect these changes and to allow our students’ to enroll earlier in this course. By doing so, students can then compete for actuarial internships many of which require the passage of at least one SoA/CAS exam. Ultimately, they will enhance their opportunities in the profession upon graduation.

II. Syllabus/outline (if course revision, include former syllabus and new syllabus)

Former Syllabus:

1Math 446 Actuarial Mathematics

Section 01

Spring 2008

This section of Math 446 Actuarial Mathematics will be team-taught by Drs. Julie Letellier and Jonathan Kane. We will meet on Mondays at a time to be determined. Each class will consist of a brief introduction to the new material followed by a question-and-answer session on the problems assigned the previous week. It is your responsibility to read the text in advance, study the material, and complete the homework. The contact information for both Drs. Kane and Letellier follows:

Dr. Letellier Dr. Kane Office: 412 McCutchan Hall Office: McGraw Hall Office phone: 472 – 5172 Office phone: 472 – 5002 Office hours: M, W 11 am – 12:30 pm Office hours: T, R 1 – 2 pm or by appointment E-mail: [email protected] E-mail: [email protected] Website:math.uww.edu/~letellij Website:math.uww.edu/~kanej

Prerequisite: Concurrent enrollment in Math 441 Probability and Math 355 Matrices and Linear 2 Algebra or my consent.

Text and Topics: The text for this course is Mathematical Interest Theory by Daniel and Vaaler available through Textbook Rental. (You need to ask the staff where the text is located.) Topics covered include the growth of money; equations of value and yield rates; annuities; loan repayment; bonds; stocks and financial markets; and arbitrage, the term structure of interest rates, and derivatives. A detailed course outline is given below.

Tentative Course Outline:

Week: Class Meets: (M) Material to be Introduced: 1 January 23 Chapter 1 2 January 28 Chapter 1 3 February 4 Chapter 2 4 February 11 Chapter 2 5 February 18 Chapter 3 6 February 25 Chapter 3 7 March 3 Chapter 3 8 March 10 Chapter 4 9 March 17 Chapter 4 Spring Break March 24 – 28 No Class 10 March 31 Chapter 4 11 April 7 Chapter 5 12 April 14 Chapter 6 13 April 21 Chapter 7 14 April 28 Chapter 8 15 May 5 Chapter 8 16 May 12 Review Final Exam TBA

All course materials will be made available via D2L.

Homework: Homework will be assigned but not graded. Although the time allotted each week will allow us to answer some of your questions on the assignments, it may be necessary for you to see either Dr. Kane or Dr. Letellier during their office hours to answer any remaining questions.

Tests and Final Exam: Three 100-point tests will be given outside of class (time is yet to be determined) on February 18th, March 17th, and April 21st. The comprehensive final exam (time and date are yet to be determined) is worth 200 points.

Technology and Tables: You MUST have the use of a Texas Instruments BA II Plus calculator for this class. If you purchase the calculator, it will cost approximately $30.

Grading: Your course grade will be based on the number of points you earn out of a total of 500 points.

Important Dates: **Late drops (drops after Feb. 29th) will be recommended for students with extreme circumstances only!! Failing the course does not qualify for extreme circumstances!! Tuesday January 29 Last Day to Add a Semester Course 3 Monday February 4 Last Day to Change Grade Basis or Cancel a Course to Avoid a "W" Friday February 29 Last Day to Cancel a Semester Course**

The University of Wisconsin-Whitewater is dedicated to a safe, supportive and non-discriminatory learning environment. It is the responsibility of all undergraduate and graduate students to familiarize themselves with University policies regarding Special Accommodations, Misconduct, Religious Beliefs Accommodation, Discrimination and Absence for University Sponsored Events. (For details please refer to the Undergraduate and Graduate Timetables; the “Rights and Responsibilities” section of the Undergraduate Bulletin; the Academic Requirements and Policies and the Facilities and Services sections of the Graduate Bulletin; and the “Student Academic Disciplinary Procedures” [UWS Chapter 14]; and the “Student Nonacademic Disciplinary Procedures” [UWS Chapter 17]).

New Syllabus:

2Math 346 Theory of Interest Spring 2015

Pre-requisite: Any student with a grade of C or better in MATH 254 may be enrolled in this course.

Text and Topics: The text for this course is Mathematical Interest Theory by Daniel and Vaaler available through Textbook Rental. This course will cover the topics of interest theory listed on the SoA/CAS syllabus for Exam FM/2. Included are the time value of money, annuities, loans, bonds, general cash flows and portfolios, and immunization schedules. A weekly course outline is given below.

Student Learning Outcomes: Upon completion of this course, a student should be able to:  Define and recognize basic definitions of interest theory.  Solve time value of money equations.  Calculate payments for annuities, loans, bonds, general cash flows and portfolios.  Construct an immunization schedule.  Construct an investment portfolio.  Study independently and in preparation for taking Exam FM/2.

Week Material Covered 1 Growth of money 2 Equations of value and yield rates 3 Basic annuities 4 More general annuities 5 Annuities with different payments and conversion periods 6 Continuously paying annuities, Exam 1 7 Loan repayment 8 Amortization and sinking funds 9 The price of a bond 10 Bond amortization schedules Spring Break No class 11 Common and preferred stock 12 Exam 2

4 13 Structure of interest rates 14 Duration and Convexity of interest rates 15 Immunization schedules Final Exam 1 – 3 pm

All course materials will be made available through D2L.

Homework: Homework from both the text and practice SoA exams will be assigned. Since one of the goals of this course is to prepare you for successfully taking Exam FM, it is imperative that you do the homework. The more homework you do, the more prepared you will be for this exam. For the reasons I have stated, homework will be collected each class period (with the exception of a class in which an exam is given), graded, and awarded a maximum of 4 points per assignment. The two lowest homework assignments will be dropped at the end of the semester. Feel free to ask me questions on the homework in class, during my office hours, or via e-mail. It is your responsibility to learn the material and keep up with the homework! Exams: Two 100-point hour exams will be given during the weeks of February 20 th and April 10 th. The material to be covered on the exams will be discussed in the class periods prior to the exam.

The final exam is comprehensive, multiple-choice (like Exam FM) and will be given on Wednesday May 12th from 1 - 3 pm. It is worth 100 points.

Calculators: Students are strongly encouraged to purchase a Texas Instruments BA-35, BA II Plus, TI- 30X, TI-30Xa, or TI-30X II calculator. Any (and all) of the aforementioned calculators may be used for the SoA/CAS exams. (In the past, the Society required that calculators carry the SoA logo on the back; this is no longer the case and you are free to purchase your calculator(s) at the establishment of your choice.) Please purchase (borrow) such a calculator before the start of the second week of class. We will use these calculators extensively for the remainder of the semester.

Make-ups: You will need to contact me ASAP if you wish to take a make-up on an exam. Make-ups will be granted for compelling reasons only. Documentation may be required.

SoA Exams: I will be handing out basic information on the SoA/CAS exams. More information on these exams and the profession in general, can be obtained by visiting the Society’s website www.soa.org or the Casualty Actuarial Society’s website www.casact.org or the website www.beanactuary.org.

Determination of Course Grade: Your course grade will be based on the total number of points earned from the possible 450 points (100 points from the best 25 homework assignments, 50 points from the writing assignment, 200 points from exams, and 100 points from the final): 405 - 450 earns an A, 360 - 404 earns a B, 315 - 359 earns a C, 270 - 314 earns a D, and below 240 earns an F. Slight adjustments of the above scale may be made at my discretion on an individual basis.

Extra Requirement for Graduate Credit (graduate students only): $ Content: Graduate students are required to cover Chapter 10 Stochastic approaches to interest in addition to the curriculum covered in class. A homework set from Chapter 10 will be assigned and graded. (10 points) $ Intensity: Each graduate student will demonstrate greater rigor in the course by delivering to the class a 50-minute lecture consisting of solving at least five Exam FM problems from the area of risk management in which integration of the course material is demonstrated. (50 points) $ Self-Direction: Each graduate student will engage in self-learning by reading the SoA’s publication on risk management concepts and then writing a 5-10 page paper on this topic. (100 5 points)

NOTE: If you are a student with a disability, please feel free to contact me early in the semester so that proper accommodations can be made to assist you. Any student using the services of CSD should also contact me early in the semester.

The University of Wisconsin-Whitewater is dedicated to a safe, supportive and non-discriminatory learning environment. It is the responsibility of all undergraduate and graduate students to familiarize themselves with University policies regarding Special Accommodations, Misconduct, Religious Beliefs Accommodation, Discrimination and Absence for University Sponsored Events. (For details please refer to the Undergraduate and Graduate Timetables; the “Rights and Responsibilities” section of the Undergraduate Bulletin; the Academic Requirements and Policies and the Facilities and Services sections of the Graduate Bulletin; and the “Student Academic Disciplinary Procedures” [UWS Chapter 14]; and the “Student Nonacademic Disciplinary Procedures” [UWS Chapter 17]).