kalasalingam university anand nagar,...

KALASALINGAM UNIVERSITY Anand Nagar, Krishnankoil

M.B.A ACTUARIAL SCIENCE COURSE DETAILS

I Semester Paper No. Course

Code Course Title L T P C

I MAS5101 Micro Economics for Actuaries 3 0 0 3 II MAS5102 Actuary Management Principles 3 0 0 3 III MAS5103 Management Accounting 3 1 0 4 IV MAS5104 Actuarial Mathematics 3 1 0 4 V MAS5105 Probability and Distributions 3 1 0 4 VI MAS5106 Consumer Behaviour 3 0 0 3 VII MAS5151 Actuarial Computational Laboratory - I 0 0 2 2

Total Credits 18 3 2 23 II Semester

Paper No. Course Code Course Title L T P C

VIII MAS 5201 Applied Mathematical Statistics 3 1 0 4 IX MAS 5202 Life and Health contingencies 3 1 0 4 X MAS 5203 Finance and Financial Reporting 3 1 0 4 XI MAS 5204 Financial Economics 3 0 0 3 XII MAS 5205 Research Methodology 3 0 0 3 XIII MAS xxxx Elective-I 3 0 0 3 XIV MAS 5252 Actuarial Computational Laboratory-II 0 0 2 2

Total Credits 18 3 2 23 III Semester

Paper No. Course Code

Course Title L T P C

XV MAS 6301 Stochastic Modeling 3 1 0 4 XVI MAS 6302 Survival Models 3 1 0 4 XVII MAS 6303 Pension and Other Employee Benefits 2 1 0 3 XVIII MAS 6304 Actuarial Risk and Insurance

Management 3 0 0 3

XIX MAS xxxx Elective-II 3 0 0 3 XX MAS xxxx Elective-III 3 0 0 3 XXI MAS 6351 Professional Development for Actuary 0 0 2 2 XXII MAS 6352 Summer Project 0 0 5 5

Total Credits 17 3 7 27 IV Semester

Paper No. Course Code

Course Title L T P C

XXIII MAS 6451 Project Work and Viva Voce 0 0 12 12 Total Credits 0 0 12 12

MBA Actuarial Science SYLLABUS 2014

KALASALINGAM UNIVERSITY 2

ELECTIVES

COURSES WITH NON CGPA CREDITS:

Category of Courses with Non-CGPA Credit Group Credits NCGAS501 International Language

A 4

NCGAS502 Paper Presentation in Conferences 3 NCGAS503 Certification Courses

B 4

NCGAS504 Research Based Projects 4 NCGAS505 Journal Publication 4

NCGAS506 Sports

C

3

NCGAS507 Voluntary Services 3

NCGAS508 Extra Curricular Activities 3

NCGAS509 Participation in Entrepreneurship programme 3

Registration Form for Non-CGPA Courses 31 Consolidated CGPA Non CGPA Credits:

Semester Credits

I – Semester 23

II - Semester 23

Summer Project

III - Semester

05

22

IV - Semester

Project Viva

12

CGPA Credit

Non CGPA Gredit

85

10

Total Credit 95

Paper No. Course Code Course Title L T P C

Group I (Management)

XIII MAS 5261 Business Law 3 0 0 3 MAS 5262 Entrepreneurship Development 3 0 0 3 MAS 5263 Human Resources Management 3 0 0 3

Group II (Mathematics/Statistics/Economics) XIX MAS 6361 Resource Management Techniques 3 0 0 3

MAS 6362 Time Series and Regression Analysis 3 0 0 3 MAS 6363 International Economics 3 0 0 3

Group III (Actuary)

XX MAS 6371 Asset and Liability Management 3 0 0 3 MAS 6372 Security Analysis and Portfolio Management 3 0 0 3 MAS 6373 Financial Services 3 0 0 3



Title of the Course: Micro Economics for Actuaries Paper Number: I

Category Core Year Semester Credits

03 Course Code

MAS5101 1 1

Credit distribution Lecture Tutorial Lab Practice Total

03 0 0 03

Learning Objectives of the Course

To provide strong foundation in fundamental concepts in economics to facilitate application of the same in the operation of insurance and financial systems. To provide sufficient understanding of macro economics so as to have in depth knowledge in future inflation returns on investment, stock market behavior, exchange rates and economic growth.

Course Outline UNIT I Introduction To Economics Macroeconomic variables: Inflation, circular flow of income, national income – Fiscal Policy - Unemployment – Indian economic planning - Current national economic trends. UNIT II Demand Analysis And Estimation Individual, market and firm demand - Determinants of demand - Elasticity measures and business decision making - Demand estimation and forecasting - Production function – Types of costs- costs in the short and long run - Break even analysis. UNIT III Market Structure Perfect and imperfect market structures - barriers to entry, economic systems, liberalization, privatization and globalization - Business Cycle - Forms of business Enterprises - Industrial Policy. UNIT IV Financial Markets Capital market – Money market – Debt market – Derivatives market- Credit market -Foreign exchange market – Overview of instrument and players – Central Bank, World bank and commercial banks and their functions, Stock exchange and role of SEBI - Monetary policy . UNIT V International Trade International trade – Balance of payment - the role of trade Policy, analysis of performance of Indian economy in external sector - WTO - Trade Blocks, Trade theories.

Recommended Text

1. Francis Cherunilam, Business Environment – Text and cases, 17th, edition, Himalaya Publishing House, Mumbai, 2006.

2. K.Aswathappa, Essentials of Business Environment, 8th, edition, Himalaya Publishing House, Mumbai, 2006.

Reference Books

1. Dhingra I.C., Indian Economy, 21st edition, S.Chand and Company Ltd., New Delhi, 2006. 2. Adhikary M., Economic Environment of Business, Macroeconomic Analysis, 10th edition,

S.Chand and Company Ltd., New Delhi, 2006. 3. Gupta, G.S. Macroeconomics, Theory and Applications, 2nd edition, Tata McGraw-Hill

publishing company Ltd., New Delhi, 2001. 4. Dwivedi D.N., Macroeconomics, 2nd Edition, Tata McGraw-Hill publishing company Ltd.,

New Delhi, 2001.



Title of the Course: Actuarial Management Principles Paper Number: II


03 Course Code

MAS5102 1 1


03 0 0 03


This course intends to provide a basic understanding of the insurance mechanism. It explains the concept of insurance and how it is used to cover risk. How insurance is transacted as a business and how the insurance market operates is also explained.

Course Outline UNIT I Development of Management thought - scientific management -Functions of managers, Management Vs Administration, Ethics in management – Social responsibilities of managers-roles & responsibilities – duties – functions of actuary –IRDA regulations UNIT II History of insurance in general in India - economic principles of insurance - legal principles of insurance - the Indian contract act 1872 – insurable interest - nomination and assignment - utmost good faith - indemnity -subrogation - contribution - proximate cause- Concepts of risk - concept of insurance - classification of insurance - type of life insurance - types of general insurance - insurance act - fire - marine - motor - engineering - aviation and agricultural. UNIT III Financial principles - premium income and outgo investments - reserves - Surplus - profit - valuation of surplus. Theory of rating - actuarial principles - mortality tables - physical and Moral hazard - risk appraisal - risk selection - under writing – reinsurance-- concepts and methods. UNIT IV Essentials of Planning – steps in planning - objectives, Policies, goals – Decision making - Creativity in decision making, programmed decisions and unprogrammed decisions -Forecasting - strategy formulation and Management by Objectives. Formal and informal organisation - Organizing - span of control, departmentation and organizational structure, authority structure, centralization and decentralization - responsibility - Group Dynamics - Organizational Politics - Organizational Power - Organizational Conflict. UNIT V Staffing – selection process – Performance appraisal – Career management - Managing change - Training - Executive development - Motivation – Leadership - Communication Process - evaluation, control process, qualities of a good control system - Management Audit - Cost Benefit Analysis.

Recommended Text

1. Harold Koontz and Heinz Weihrich, Essentials of Management, 6th edition, Tata McGraw Hill publishing company Ltd, New Delhi, 2004.

2. Koontz, Weihrichand Aryasri, Principles of Management, 6th edition, Tata McGraw Hill publishing company Ltd., New Delhi, 2004.

3. Gupta P.K, ― Insurance and Risk Management‖, Himalya Publishing House; 2004 4. Mishra M.N., ― Principles and Practices of Insurance‖,S. Chand and Co; 2004 5. Panda G.S., ―Principles and Practices of Insurance‖ Kalyani Publications, 2004

Reference Books

1. Arthur C. and C. William Jr., ―Risk Management and Insurance,‖ Tata Mcgraw Hill; 2001 2. Principles of Insurance- Insurance Institute of India; 2003 3. Angelo Kinicki, Management, 2nd edition, Tata McGraw Hill publishing company Ltd, New

Delhi, 2006.



Title of the Course: Management Accounting Paper Number: III


04 Course Code

MAS5103 1 1


03 01 0 04 Learning Objectives of the Course

Provide students with basic concepts of management accounting and the usefulness of internal accounting system;

Course Outline UNIT I Introduction to Financial, Cost and Management accounting - generally accepted accounting principles, conventions and concepts - Introduction to inflation accounting and human resources accounting. UNIT-II Basic records - The balance sheet and related concepts, the profit and loss account and related concepts - Measurement of income - Valuation of assets - Preparation of the income statement and balance sheet. UNIT-III Ratio analysis - Cash and Fund flow statements, changes in working capital, funds from operation, and cash from operations. UNIT-IV Accounting disclosure practices in India - International Accounting – Disclosure Practices - Accounting standards, Financial Forecasting - Computerized Accounting. UNIT-V Cost concepts and methods – Manufacturing Costs – Job order costing, process costing - Activity based costing, Target Costing, Standard Cost system – Marginal Costing, incremental analysis, Special order decision, Budget as a Planning and Control tool.

Recommended Text

1. Narayanaswamy .R, Financial Accounting: A Managerial Perspective, 2nd edition, Prentice Hall India Pvt., Ltd., New Delhi. 2005.

2. Pillai.R.S.N and Bagavathi, Management Accounting, 1st edition, S.Chand and Co. Ltd., New Delhi, 2004.

3. Pandey. I.M., Management Accounting, 3rd edition, Vikas Publishing House Pvt. Ltd., New Delhi, 2004.

Reference Books

1. Khan.M.Y and P.K.Jain, Management Accounting, 4th edition, Tata McGraw Hill publishing company Ltd., New Delhi, 2004.

2. Srinivasan .N.P and M.Sakthivel Murugan, Accounting for Management, 1st edition, S.Chand, 2004.

3. Bhattacharya S.K., John Dearden, Accounting for Management: text and cases, 3rd edition, Vikas publishing house, New Delhi, 1997



Title of the Course: Actuarial Mathematics Paper Number: IV


04 Course Code

MAS5104 1 1


03 01 0 04


The course is designed to introduce the main mathematical ideas involved in the modeling of asset price evolution and the valuation of contingent claims (such as call and put options) in a discrete and in a continuous framework..

Course Outline UNIT I: Rates of interest – Simple and Compound interest rates –Effective rate of interest - Accumulation and Present value of a single payment – Nominal rate of interest – Constant force of interest - Relationships between these rates of interest - Accumulation and Present value of single payment using these rates of interest – accumulation and present value of a single payment using these symbols - when the force of interest is a function of t, (t). Definition of A(t1, t2), A(t), (t1, t2) and (t). Expressing accumulation and present value of a single payment using these symbols - when the force of interest is a function of t, (t). UNIT II: Series of Payments(even and uneven) - Definition of Annuity(Examples in real life situation) – Accumulations and Present values of Annuities with level payments and where the payments and interest rates have same frequencies - Definition and Derivation of

na ,

ns ,

na ,

ns , Definition of Perpetuity and derivation for

a and

a -Examples

- Increasing and Decreasing annuities – Definition and derivation for n

Ia)( , n

Is)( and n

Da)(

UNIT III: Accumulations and Present values of Annuities where payments and interest rates have different frequencies.

Definition and derivation of )( p

na , )( p

na , )( p

ns , )( p

ns - Annuities payable continuously - Definition and derivation of na ,

naI )( , ns ,

nsI )( - Annuities where payments are increasing continuously and payable continuously –

definition and derivation of n

aI )( , n

sI )( .

UNIT IV: Loan schedules – Purchase price of annuities net of tax – Consumer credit transactions UNIT V : Fixed interest securities – Evaluating the securities – Calculating yields – the effect of the term to redemption on the yield – optional redemption dates – Index linked Bonds – evaluation of annuities subject to Income Tax and capital gains tax.

Recommended Text 1. Institute of Actuaries ActEd. Study Materials. 2. McCutcheon, J.J., Scott William, F. (1986) : An introduction to Mathematics of

Finance, London Heinemann

Reference Books

1. Butcher,M.V.,Nesbitt, Cecil,J. (1971) : Mathematics of compound interest, Ulrich’s Books.

2. Bowers, Newton L.et al (1997):Actuarial Mathematics, Society of Actuaries, 2nd ed.



Title of the Course: Probability and Distributions Paper Number: V


04 Course Code

MAS 5105 1 1



On completion of this course the students will be able to understand the probability distributions and their applications to Industrial and Actuarial problems.

Course Outline UNIT-I Elements of Probability: Sample Space and Events - Venn Diagrams and the Algebra of Events - Axioms of Probability - Sample Spaces Having Equally Likely Outcomes - Conditional Probability - Bayes’ Formula - Independent Events UNIT-II Random Variables and Expectation Random Variables : Types of Random Variables - Jointly Distributed Random Variables - Independent Random Variables - Conditional Distributions –Functions of a random variable - Expectation : Properties of the Expected Value - Expected Value of Sums of Random Variables - Variance - Covariance and Variance of Sums of Random Variables - Moment Generating Functions - Chebyshev’s Inequality and other moment inequalitites . Conditional Expectation and Conditional Variance- Probability Generating Functions. UNIT-III Discrete Random Variables: The Bernoulli and Binomial Random Variables - Computing the Binomial Distribution Function - The Poisson Random Variable - Computing the Poisson Distribution Function - The Hypergeometric Random Variable. UNIT-IV Continuous Random Variables: The Uniform Random Variable - Normal Random Variables - Exponential Random Variables - The Gamma Distribution - Distributions Arising from the Normal - The Chi-Square Distribution - The Relation Between Chi-Square and Gamma Random Variables - The t-Distribution - The F-Distribution UNIT-V Limit Theorems: Modes of Convergence – The weak Law of Large Numbers – The Strong Law of Large Numbers – Limiting Moment Generating Function – The Central Limit Theorem for IID random variables and independent and non-identically distributed random variables.

Recommended Text

1. V.K.Rohatgi. An Introduction to Probability Theory and Mathematical Statistics,Wiley Eastern Limited. New Delhi 1986.

2. S.M.Ross. Introduction to Probability and Statistics for Engineers and Scientists, Academic Press, New York, 2004. 3rd Edition

Reference Books

1. Gibbons, J.D. (1985): Non parametric Statistical Inference, Marcel Dekker, New York. 2. Hogg, R.V. and Craig (1972): Introduction to Mathematical Statistics, 3rd ed.,

McGrawHill. 3. Johnson, R.A. and Wichern, D.W. (1982): Applied Multivariate Statistical Analysis, 2nd

ed., Prentice Hall, Englewood Cliffs, New Jersey.



Title of the Course: Consumer Behaviour Paper Number: VI


03 Course Code

MAS5106 01 01



To prepare tomorrow’s marketers to create and market brands that successfully meet consumer needs.

Course Outline UNIT I Consumer behaviour – introduction – Consumer behaviour – concepts – dimensions of consumer behaviors – application of consumer behaviour knowledge in marketing decisions – approaches to the study of consumer behaviour. UNIT-II Motivation, ability and opportunity, exposure, attention and perception categorizing and comprehending information - Attitude formation and change – memory and retrieval Process of decision making – psychographics consumer behaviour outcomes – consumer welfare. UNIT-III Group dynamics and consumer reference groups – Family – Social class cultural and sub-cultural aspects – cross cultural consumer behaviour. UNIT-IV Personal influence and opinion leadership – Diffusion of innovations – Consumer decision making process – Models of consumer decision process – Nicosia - Howard Sheth and Engel - Kollat model - Post purchase behaviour– Organizational and industrial buyer behaviour – Consumer behaviour in Indian context – Emerging issues. UNIT-V Consumerism – Consumer protection – Difficulties and challenges in predicting consumer behaviour – Online consumer behaviour.

Recommended Text

1. Del Hawkins, Roger J Best, Kenneth A Coney, Eric C Koch Amit Mookerjee, Consumer Behaviour, Building Marketing Strategy , 9th edition, Tata McGraw Hill, New Delhi, 2006.

2. Paul Peter, Madison, Jerry C Olson, Consumer Behaviour & Marketing Strategy, 7th edition, Tata McGraw Hill, New Delhi, 2005.

Reference Books

1. Loudon, Consumer Behaviour: Concepts and Application, 4th edition, Tata McGraw Hill, New Delhi, 2001.

2. Delbert I. Hawkins and Roger J. Best and Coney A., Consumer Behaviour: Building Marketing Strategy, 10th edition, Tata McGraw Hill, New Delhi, 2007.

3. Cathy Neal, Pascale Quester, Consumer Behaviour Implication for Marketing Strategy, 4th edition, Tata McGraw Hill, New Delhi, 2004.



Title of the Course: Actuarial Computational Laboratory I Paper Number: VII


02 Course Code

MAS 5151 1 1



Enhance computer knowledge and research.

Course Outline UNIT-I Management Package Accounting packages (TALLY) UNIT-II SPSS Software:

a) Basic Data Analysis and graphs b) Regression Analysis c) Correlation d) Parametric test e) Nonparametric test f) Risk Analysis using Monte- carlo method g) Insurance claims severity and frequency h) Analysis of variance

Recommended Text

1. Winston, Practical Management science: Spreadsheet Modeling and applications,2nd edition, Thomson learning, New Delhi, 2001

2. Carver, Doing Data analysis with SPSS 10.0, 6th edition, Thomson Learning, New Delhi, 2001.

3. Swapna Kishore and Rajesh Naik, Software Requirements and Estimation, 1st edition, Tata McGraw Hill, New Delhi, 2002.

Reference Books

1. Chary, Production and Operations Management, 3rd edition, Tata McGraw Hill, New Delhi, 2004.

2. Majumdar, Introduction to Database Management Systems, 3rd edition, Tata McGraw Hill, New Delhi, 2002.

3. Fred T. Hofstetter, Advanced Web design with Front Page, 1st edition, Tata McGraw Hill, New Delhi, 2003.



Title of the Course: Applied Mathematical Statistics Paper Number: VIII


04 Course Code

MAS 5201 1 2


03 01 0 04


Only application outstanding of basic concepts, main theorem, methods and underlying conditions are required to be emphasized. After going through this course the student shall be able to identify the appropriate method of inference after verifying the validity of the conditions which these methods demand.

Course Outline UNIT-I Distributions of Sampling Statistics: The Sample Mean - Approximate Distribution of the Sample Mean - How Large a Sample is Needed? - The Sample Variance - Sampling Distributions from a Normal Population - Distribution of the Sample Mean - Joint Distribution of X and S2 - Sampling from a Finite UNIT-II Parameter Estimation : Maximum Likelihood Estimators - Estimating Life Distributions - Interval Estimates - Confidence Interval for a Normal Mean When the Variance is Unknown - Confidence Intervals for the Variances of a Normal Distribution - Estimating the Difference in Means of Two Normal Populations - Approximate Confidence Interval for the Mean of a Bernoulli Random Variable - Confidence Interval of the Mean of the Exponential Distribution- Evaluating a Point Estimator. UNIT-III Hypothesis Testing : Significance Levels - Tests Concerning the Mean of a Normal Population - Case of Known Variance - Case of Unknown Variance: The t-Test - Testing the Equality of Means of Two Normal Populations - Case of Known Variances - Case of Unknown Variances - Case of Unknown and Unequal Variances - The Paired t-Test - Hypothesis Tests Concerning the Variance of a Normal Population - Testing for the Equality of Variances of Two Normal Populations - Hypothesis Tests in Bernoulli Populations - Testing the Equality of Parameters in Two Bernoulli Populations - Tests Concerning the Mean of a Poisson Distribution. UNIT-IV Analysis of Variance : One-Way Analysis of Variance - Multiple Comparisons of Sample Means - One-Way Analysis of Variance with Unequal Sample Sizes - Two-Factor Analysis of Variance: Introduction and Parameter Estimation - Two-Factor Analysis of Variance: Testing Hypotheses - Two-Way Analysis of Variance with Interaction UNIT-V Goodness of Fit Tests and Categorical Data Analysis: Goodness of Fit Tests When all Parameters are Specified - Goodness of Fit Tests When Some Parameters are Unspecified - Tests of Independence in Contingency Tables. Nonparametric Hypothesis Tests: The Sign Test - The Signed Rank Test - The Two-Sample Problem - The Runs Test for Randomness .

Recommended Text

1. S.M.Ross. Introduction to Probability and Statistics for Engineers and Scientists – Academic Press, New York, 2004 3rd Printing

2. A.M.Mood, F.A. Graybill and D.C. Boas. Introduction to the Theory of Statistics, McGraw Hill Company, NewYork, 1974

Reference Books

1. V.K.Rohatgi. An Introduction to Probability Theory and Mathematical Statistics, Wiley Eastern Limited. New Delhi 1986.

2. R.V.Hogg and E.A. Tanis, Probability and Statistical Inference, Pearson Education,2002 6th Edition.



Title of the Course: Life and Health Contingencies Paper Number: IX Category

Core Year Semester Credits

04 Course Code

MAS 5202 1 2 Credit distribution Lecture Tutorial Lab Practice Total


Set forth, usually in broad terms, what the candidate should be able to do in actual practice. Included in these learning objectives are certain methodologies that may not be possible to perform on an examination, such as complex simulations, but that the candidate would still be expected to explain conceptually in the context of an examination.

Course Outline UNIT-I Mean and variance of the present value of benefit payments - techniques deal with the possibility that benefits are payable more frequently than annually.-symbols Ax , Ax:n , Ax:n 1 , Ax n : and their select and continuous equivalents. UNIT-II Whole life level annuity-Temporary level annuity - Premium – Benefit including annuity contracts where the benefits are deferred. annuities annually in advance or in arrears-expressions in the form of integrals for the mean and variance of the present value of benefit payments- symbols ax , ax:n , m x:n a Ω , a!!x , a!!x:n , m x:n a Ω!! and their select and continuous equivalents. UNIT-III Derive relations Ax = 1- da!!x and Ax:n = 1- da!!x:n and continuous equivalents - practical methods of evaluating expected values and variances of the simple contracts defined above - Evaluate the expected values and variances, where appropriate, including the use of the relationships – UNIT-IV Determination of premium for an Assurance and Annuity contracts – Provision or Reserve at duration t for various types of assurance and annuity contracts – Equivalence of prospective and Retrospective provisions – Death strain at Risk – Expected and Actual Death strain – Mortality profit/loss UNIT-V Variable benefits and with profits: calculate the expected present value of an annuity, premium, or benefit payable on death, which increases or decreases by a constant compound rate - Calculate net premiums and net premium provisions for contracts with premiums and benefits which vary as described. Define the symbols (IA)x , (Ia)x, and (Ia)x and their select equivalents - Calculate the expected present value of an annuity, premium or benefit - payable on death, which increases or decreases by a constant monetary - amount. Calculate net premiums and net premium provisions for - contracts with premiums and benefits which vary as described - Define with-profits contract - List the types of bonus that may be given to with-profits contracts - Calculate net premiums and net premium provisions for with-profits contracts.

Recommended Text

1. Griffith Davis "Table of Life Contingencies", Longman &Co, 1825: University of California Library

2. Micheal M Parmenter, 'theory of Interest and Life contingencies with Pension", 3rd edition.

Reference Books

1. B H Smith "Contingencies of Value" Harvard university Press, 1988 2. Alistair Neil " Life Contingencies", Butterworth-Heinemann Ltd; illustrated edition (1977)



Title of the Course: Finance and Financial Reporting Paper Number: X


04 Course Code

MAS 5203 1 2



The aim of the Financial Reporting section of the course is to provide the ability to interpret the accounts and financial statements of companies and financial institutions.

Course Outline UNIT I Introduction to Finance Investment and knowledge management- principles of finance— finance and real resources- Functions of Financial Management – Scope – Organisation – Sources of funds - capital markets- agency theory — shareholder's wealth — methods of finance- business entities — types of loan and share capital. UNIT II Share capital — limited company — private and public company — medium term and short term companies —- Personal and corporate taxation — Principal forms of financial instruments: Characteristics of issuers and non financial company — types of new issues —role of underwriting - legal documentation – corporate and personal taxation - Types of business entity UNIT III Capital structure and dividend policy: market valuation of a company — effect of taxation — setting divided policy — profits and buybacks —Cost of capital interacts: weighted average cost — project evaluation — risky investment UNIT IV Financial reporting – Accounting principles – types – basic financial statement – kinds of reports – Nature of reports – guiding principles of reporting – necessary steps for good reporting. UNIT V Accounts of a Group of company: Priority percentage, gearing- income and asset cover- price earning ratio, dividend — accounting ratio — limitations — false impression —financial techniques in capital investment: viability, discount rate — different risk covers — distribution of financial out comes

Recommended Text 1. Lawrence Revsine "Financial Reporting and Analysis", Mc Graw Hill, 2008. 2. Anne Britton, Chris waterston " Financial Accounting", Pearson Education,2009

Reference Books

1. Brealey, Richard, A. (1999): Principles of Corporate finance, McGraw Hill, 6th ed. 2. Holmes, Geoffrey, Sugden, Alan (1999): Interpreting company reports and accounts,

Prentice Hall, 7th ed. 3. Barry Elliott, Jamie Elliott" Financial Accounting and reporting", Trans-Atlantic

publications, 2005



Title of the Course: Financial Economics Paper Number: XI


03 Course Code

MAS 5204 01 02



To develop necessary skills to construct and apply asset liability models and to value financial derivatives.

Course Outline Unit: I : Market Mechanism – Supply and Demand interaction – Determination of equilibrium Elasticity of demand and Supply – Rational utility and consumption choice– Insurance system and its impact on Welfare -short and long run equilibrium in different markets – perfect competition, Monopoly, Monopolistic competition - Methods of calculating National Income – problems – difficulties and uses of National Income Analysis UNIT II: Monetary and Fiscal policy – Government intervention – financial markets – exchange rates – International trade – Balance of payments- Inflation types – interest rate and exchange rate – types of unemployment – public sector finances in an industrial economy. UNIT III: Application of utility theory to financial problems – Stochastic dominance to portfolio selection problems – Advantages and disadvantages of investment risk - Assumptions of mean variance portfolio theory and its principal results properties of single and multifactor models of asset returns – Liabilities and portfolio selection – asset and liability modelling. UNIT IV: Equilibrium models such as capital asset pricing model assumptions and limitations of such models. Forms of efficient market hypothesis – evidence for and against such hypothesis – stochastic models and behaviour of security prices -Estimating parameters for asset pricing models – models of the term structure of interest rates. UNIT V: Hypocrites of option prices – determinants of option prices – upper and lower bounds for option prices – Black Scholes analysis and arbitrage free pricing – numerical procedures used in derivative pricing and valuation.

Recommended Text

1. K.Aswathappa, Essentials of Business Environment, 8th, edition, Himalaya Publishing House, Mumbai, 2006.

2. Francis Cherunilam, Business Environment – Text and cases, 17th, edition, Himalaya Publishing House, Mumbai, 2006.

Reference Books

1. Dwivedi D.N., Macroeconomics, 2nd Edition, Tata McGraw-Hill publishing company Ltd., New Delhi, 2001.

2. Gupta, G.S. Macroeconomics, Theory and Applications, 2nd edition, Tata McGraw-Hill publishing company Ltd., New Delhi, 2001.

3. K.P.M.Sundaram, Indian Economy, 17th Edition, Himalaya Publishing House, Mumbai, 2006.

4. Panjer, Harry, H. (1998): Financial economics: with applications to investments,insurance and pensions. The Actuarial foundations. Institute of Actuaries ActEd , Study material.



Title of the Course: Research Methodology Paper Number: XII


03 Course Code

MAS 5205 1 2


03 0 0 03


To gain insights into how scientific research is conducted. To help in critical review of literature and assessing the research trends, quality and extension potential of research and equip students to undertake research. To learn and understand the basic statistics involved in data presentation. To identify the influencing factor or determinants of research parameters. To test the significance, validity and reliability of the research results. To help in documentation of research results.

Course Outline UNIT I The research process for applied and basic research – the need for theoretical frame work – hypothesis development – hypothesis testing with quantitative data - The research design - The purpose of the study: Exploratory, Descriptive, Hypothesis testing. UNIT II The laboratory and the field experiment – internal and external validity – factors affecting internal validity - Measurement of variables – scales and measurement of variables – development scales - rating scale and concept in scales being developed - Stability measures. UNIT III Data Collection Method - interviewing, questionnaires - secondary sources of data collection - guidelines for questionnaire design – electronic questionnaire design and surveys - Special data source:-focus groups, static and dynamic data-collection methods and when to use each - Sampling techniques and confidence in determining sample size - Hypothesis testing determination of optimal sample size. UNIT IV Factor analysis – Cluster analysis – Discriminant analysis – Multiple regression and Correlation, canonical correlation UNIT V The purpose of written report – concept of audience – Basics of written reports - The integral parts of a report – the title of a report - table of content, the synopsis, the introductory section, method of sections of a report, result section – discussion section – recommendation and implementation section.

Recommended Text

1. Donald R. Cooper and Pamela S. Schindler, Business Research Methods, 9th edition, Tata McGraw Hill Publishing Company Limited, New Delhi, 2006.

2. Kothari C.R., Research Methodology, 2nd edition, New Age International Private, Ltd, New Delhi, 2001.

Reference Books

1. Robert Julius Myers ―Indexation of pension and other 1. Donald Cooper, Boca Rator and Pamela Schindler, Business Research Methods, 9th edition, Tata McGraw Hill, New Delhi, 2006.

2. Pamela .L.Alreck and Robert Settle, Survey Research Hand Book, 3rd edition, Tata McGraw Hill Publishing Company Limited, New Delhi, 2004.

3. Tripathi, Research Methodology in Socials Sciences, 5th edition, Sultan Chand, New Delhi, 2007.



Title of the Course: Actuarial Computational Laboratory II Paper Number: XIV


02 Course Code

MAS 5252 1 2



Improve computer skills

Course Outline MS-Access

Student management system Library management system Premium management system Management problems

MS- Excel:

PV Value Investment calculation EMI Financial reporting Fund flow and Cash flow Rates of interest Simple and Compound interest rates Accumulation and Present value of a single payment Increasing and Decreasing annuities Fixed interest securities Evaluating the securities

AMOS (Analysis and Motion Structure)

Recommended Text

1. Winston, Practical Management science: Spreadsheet Modeling and applications,2nd edition, Thomson learning, New Delhi, 2001

2. Carver, Doing Data analysis with SPSS 10.0, 6th edition, Thomson Learning, New Delhi, 2001.

3. Swapna Kishore and Rajesh Naik, Software Requirements and Estimation, 1st edition, Tata McGraw Hill, New Delhi, 2002.

Reference Books

1. Chary, Production and Operations Management, 3rd edition, Tata McGraw Hill, New Delhi, 2004.

2. Majumdar, Introduction to Database Management Systems, 3rd edition, Tata McGraw Hill, New Delhi, 2002.

3. Fred T. Hofstetter, Advanced Web design with Front Page, 1st edition, Tata McGraw Hill, New Delhi, 2003.



Title of the Course: Stochastic Modeling Paper Number: XV


04 Course Code

MAS 6301 2 3



To provide fundamentals of general principles of Stochastic Modelling. To lay strong theoretical foundation with potential applications to industrial and actuarial models.

Course Outline Review of Probability: Events and Probability- Random Variables - Conditional Probability and Independence ; Conditional Expectation - Conditioning on an Event Conditioning on a Discrete Random Variable - Conditioning on an Arbitrary Random Variable Conditioning on a a-Field (No questions from these topics for any examination) UNIT-I Martingales in Discrete Time: Sequences of Random Variables - Filtrations - Martingales - Games of Chance - Stopping Times - Optional Stopping Theorem; Martingale Inequalities and Convergence : Doob 's Martingale Inequalities - Doob's Martingale Convergence Theorem Uniform Integrability and L1-Convergence of Martingales UNIT-II Markov Chains: First Examples and Definitions - Classification of States - Long-Time Behaviour of Markov Chains: General Case - Long-Time Behaviour of Markov Chains with Finite State Space UNIT-III Stochastic Processes in Continuous Time: Poisson Process - Exponential Distribution and Lack of Memory - Construction of the Poisson Process - Poisson Process Starts from Scratch at Time t - Birth Process – Death Process – Birth and Death Processes – and Subcases. UNIT-IV Brownian Motion: Basic Properties - Increments of Brownian Motion - Sample Paths - Doob's Maximal L2 Inequality for Brownian Motion - Various Exercises on Brownian Motion UNIT-V Stochastic Calculus: Ito Stochastic Integral: Definition - Examples - Properties of the Stochastic Integral - Stochastic Differential and Ito Formula - Stochastic Differential Equations

Recommended Text 1. Brzezniak, Z and Zastawniak, T. (2002) : Basic Stochastic Processes : A course

through Exercises, Springer, New York.4th Printing.

Reference Books

1. Grimmett, G., Stirzaker, D. (1992): Probability and Random Processes, Oxford University Press.

2. Kulkarni, V.G. (1995): Modelling and Analysis of Stochastic Systems, Thomson Science and Professional.

3. Ross, S.M.(1996): Stochastic processes, John Wiley & Sons, Inc., New York



Title of the Course: Survival Models Paper Number: XVI


04 Course Code

MAS 6302 2 3



To provide fundamentals in survival models and develop skills to apply to industrial and actuarial situations.

Course Outline UNIT- I Survival models: Concept - Models of life time or failure time- consistency- condition between random variables- densities and distribution of future life time, survival function, force of mortality UNIT — II Gompertz and Makeham laws- Curtate future life time model- Expected value and variance of the complete and curtate future life time- Define ex and exo — Two state Markov Model of a single decrement, procedures of Life time Distributions UNIT — III Life time distributions: Methods of censoring- Kaplan-Meier estimate — Nelson Aalen estimate of cumulative hazard — Cox Regression model - Multi state Markov Models - Statistical Models of transfers between multiple States, Derivation of relationships between probabilities of transfer and transition intensities. UNIT- IV Likelihood function and likelihood estimators for transition intensities- Poisson approximation estimator — Binomial model mortality — maximum likelihood estimator for binomial models UNIT — V Census approximation: Importance of homogeneous classes- central exposed to risk — census approximation of waiting time — concepts of rate of interval — Crude estimates: Statistical tests of crude estimates-graduating, smoothness of crude estimates- advantages and disadvantages — comparison of crude and graduated set — standard table.

Recommended Text

1. Elke Korn, Ralf Korn " Monte Carlo Simulation of financial and Actuarial model" Chapman & Hall, (Feb 2010)

2. Marubini, Ettore, Valsecchi, Marai Grazia, Emmerson, M. (1995): Analysis of Survival data from Clinical Trials and observation of studies, John Wiley.

Reference Books

1. Benjamin, B. Pollard, J.H. (1993) : The analysis of mortality and other actuarial statistics, Faculty and Institute of Actuaries, 3rd Edition,

2. Elandt-Johnson, Regina C; Johnson, Norman L., 2nd ed. (1999): Survival Models and data analysis, John Wiley.

3. Regina C Elandt Johnson "Survival models and data Analysis", Wiley, Inter science, 1999



Title of the Course: Pension and other Employee Benefits Paper Number: XVII


03 Course Code

MAS 6303 2 3


02 01 0 03


To install successful candidates the ability to apply, in simple situations, the mathematical and economic techniques and the principles of actuarial planning and control needed for the operation on sound financial lines of providers of pensions or other employee benefits.

Course Outline UNIT-I Provision of pensions and other benefits — provision of pension and other benefits – Rolls of the Pensions Regulator, employers or groups of employers, individuals or groups of individuals, trustees, actuaries, investment advisers, other advisers - alternative systems of social security — Mandatory individual accounts- Occupational pension scheme- personal pensions-Needs of parties- implications for the parties. UNIT-II Risks and uncertainties affecting - incidence of benefits - contributions - overall security of benefits - Financing the benefits — time contribution- characteristics of investment — payment dues — Sponsor covenant — Suitable design for benefits and contribution- risks and uncertainties. UNIT-III Problems in company purchase or merger - different interests and responsibilities - Pensions Clause of a Sale - Process of population projection — Socio-economic factors - Actuarial models for decision making purposes in non state pensions - Actuarial methods to financial management of social security scheme — Assumptions for valuing future benefits — determination of discontinuance. UNIT-IV Value of assets, future benefits and contributions — application of actuarial methods to contribution of pension schemes : Viability, robustness— conversion of individual accounts — retirement income planning and pension grantees — future operating expenses UNIT-V Principles behind the determination of discontinuance terms - rights of beneficiaries - method of provision of discontinuance- level of available assets - Asset-liability matching for pensions and related benefits — re-insurance, risk and uncertainties of pensions —Sources of surplus/deficit for a benefit provider- Actuarial control cycle - asset-liability matching requirements - trade-off - Produce coherent advice and recommendations.

Recommended Text 1. Jeery S Rosenbloom "The Handbook of Employee benefits" 6th edition ,Mc Graw Hill 2. Richard M Stienberg " Pension and other employee benefits" 4th Edition 1992, Wiley

and sons

Reference Books

1. Robert Julius Myers ―Indexation of pension and other benefits‖ Published for the Pension Research Council, Wharton School, University of Pennsylvania by R. D. Irwin, 1978

2. Marie Bechtel, Jon E. Heywood ―Dividing Pensions and Other Employee Benefits in California Divorces‖ Continuing Education of the Bar--California, 2006



Title of the Course: Actuarial Risk and Insurance Management Paper Number: XVIII

Category Core Year 02

Semester 03

Credits 03

Course Code MAS 6304



To develop ability to apply principles of Actuarial.

Course Outline UNIT I: Concept of Decision theory and its applications – Concepts of Bayesian statistics – Calculation of Bayesian Estimators. UNIT II: Calculate probabilities and moments of loss distributions both with and without simple reinsurance arrangements – Construct risk models appropriate to short term insurance contracts and calculate MGFs and moments for the risk models both with and without simple reinsurance arrangements. - Calculate and approximate the aggregate claim distribution for short term insurance contracts. UNIT III: Ruin for a risk model – Calculate adjustment coefficients and state Lundberg’s inequality –effect on the probability of ruin of changing parameter values - simple reinsurance arrangements. UNIT IV: Concepts of credibility theory –fundamental concepts of simple experience rating systems –techniques for analyzing delay(or run-off) triangle- projecting ultimate position UNIT V: Fundamental concepts of a generalized linear model(GLM) - GLM.

Recommended Text 1. Hossack, Ian B; Pollard, John H; Zenhwirth, Benjamin (1999) : Introductory Statistics

with applications in General Insurance, Cambridge University Press. 2nd edn.

Reference Books

1. Klugman, Stuart A. et al. (1998) : Loss Models: from data to decisions, John Wiley 2. Daykin Chris, D; Pentikainen, Teivo; Pesonen, Martti (1994) : Practical Risk theory for

Actuaries, Chapman & Hall.



Title of the Course: Professional Development for Actuary Paper Number: XXI


02 Course Code

MAS 6351 2 3



To develop interpersonal skills of Actuaries

Course Outline UNIT: I : Self-development – Emotional Competence, emotional self control and empowerment - Social Competent, harmonious, productive interpersonal relationships - Exercise and testing. Human Concerns and Aspirations Guidelines for human Behaviour – Human rights and freedoms, learning and development. UNIT II: Building Relationships that work, bargaining for advantage - Strategic Persuasion, the art and science of selling ideas – Conflict resolution, transforming competition into cooperation - Personality, strengths, and weaknesses in negotiations. UNIT III: Definition of etiquettes, work etiquette, meeting people, telephone etiquette, dining etiquettes, correspondence etiquette, email etiquettes, international business etiquettes, cultural courtesy. UNIT IV: Social intelligence - Empathy, positive regard and active listening skills - Personal intelligence, self-insight, self-evaluation, self-monitoring, self-motivating. UNIT V : Knowing self – Strength, weakness, attitude, personality - Entrepreneurial self analysis.

Recommended Text 1. Dilip G. Saraf, Conquering Your Workplace: From Mail Room to Board Room-A

Sourcebook for Today's Workforce, iUniverse, Published 2005.

Reference Books

1. Negotiation, Harvard Business School Press, Published 2003. 2. Helena Hargaden, Charlotte Sills, Transactional Analysis: A Relational Perspective,

Psychology Press (UK), Published 2002.



Title of the Course: Summer Project Paper Number: XXII


05 Course Code

MAS 6352 2 3

Credit distribution Lecture Tutorial Practice Total


To get the real life experience

Course Outline Students should undergo project work for successful completion of the M.B.A Actuarial Science programme. It aims at developing insight and capabilities in the students for in depth study, research, interpretation, and analysis on a particular chosen topic in any reputed institution or organization. Project topic has to be selected with respect to the programme of study and area elected by the student. The report will contain the objectives and scope of the study. Research methodology, use, importance of the study, analysis of data collected, conclusions and recommendations. It should contain relevant charts, diagrams and bibliography. A certificate of the Supervisor and the Head of the M.B.A Actuarial Science program certifying the authenticity of the report shall be attached therewith. The student will submit three copies of the report to the Project Coordinator. The Research Work is evaluated for 100 marks. Grade will be given accordingly. Two Project Reviews will be conducted during the project time and final evaluation is done with Viva Voce. The duration of the course is 6 weeks (42 days).



Title of the Course: Project Work & Viva Voce Paper Number: XXIII


12 Course Code

MAS6451 2 4



To aim that student gets research experience in the real field.

Course Outline Students should undergo project work for successful completion of the M.B.A Actuarial Science programme. It aims at developing insight and capabilities in the students for in depth study, research, interpretation, and analysis on a particular chosen topic in any reputed institution or organization. Project topic has to be selected with respect to the programme of study and area elected by the student. The report will contain the objectives and scope of the study. Research methodology, use, importance of the study, analysis of data collected, conclusions and recommendations. It should contain relevant charts, diagrams and bibliography. A certificate of the Supervisor and the Head of the M.B.A. Actuarial Science program certifying the authenticity of the report shall be attached therewith. The student will submit three copies of the report to the Project Coordinator. The Research Work is evaluated for 100 marks. Grade will be given accordingly. Two Project Reviews will be conducted during the project time and final evaluation is done with Viva Voce. The duration of the course is 14 weeks (108 days).



ELECTIVES Group I (Management)

Title of the Course: Business Law Paper Number: XIII

Category Elective Year 01

Semester 01

Credits 03



03 0 0 03


This course will approach the topic of competitive strategy using an economics framework. This use of economic tools allows us to formally evaluate how firms implement and execute strategy decisions. It also allows us to operationalize and synthesize many of the toolsthat you have learned in other courses.

Course Outline UNIT I INDIAN CONSTITUTION Basic principles of the Indian Constitution - Fundamental rights and directive principles. UNIT II CONTRACTS ACT Contract Act - Basic principles of contract, indemnities and guarantees, agency, quasi contracts. UNIT III SALE OF GOODS ACT Sale of Goods Act - conditions, warranties, Negotiable Instruments Act, negotiable instruments, banker and customer relation, bills of exchange, cheque, and banker’s cheque. UNIT IV COMPANIES ACT Companies Act - Incorporation, types of companies, articles and memorandum of association, prospectus, borrowing powers of the company, powers, duties and liabilities of directors. UNIT V INDUSTRIAL LAW Overview of Factories act - Payment of Wages Act, Payment of Bonus Act, Minimum Wages Act, ESI Act, Workmen’s Compensation Act, Industrial Disputes Act, Shops and Establishments Act, Trade Unions Act - VAT and Service tax, Customs Act, Central Excise, Consumer Protection Act, only basic concepts.

Recommended Text

1. Kapoor N.D., Elements of Mercantile Law, 28th edition, Sultan chand and company, New Delhi, 2007.

2. Akhileshwa Pathak, Legal aspects of Business, 1st edition, Tata McGraw Hill, New Delhi, 1996.

Reference Books

1. Kuchhal M.C., Mercantile Law, 6th edition, Vikas Publishing house Pvt. Ltd., New Delhi, 1999.

2. Datey.V.S, Indirect Taxes, 17th edition, Taxmann Publications Pvt, Ltd, New Delhi, 2007.

3. Kapoor N.D., Legal and Regulatory Framework of Business, 1st edition, Sultan Chand, New Delhi, 2005.



Title of the Course: Entrepreneurship Development Paper Number: XIII


Semester 01

Credits 03



03 0 0 03


Study of this subject provides an understanding of the scope of an entrepreneur, key areas of development, financial assistance by the institutions, methods of taxation and tax benefits, etc.

Course Outline UNIT I Entrepreneurial Competence: Conceptual models of entrepreneurship – entrepreneurial leaders, managers –

Entrepreneurial characteristics – attitudes, motivation, ethical issues – Social entrepreneurship UNIT II Entrepreneurial Environment: Small business and corporate entrepreneurship – Risk – Intrapreneurship – culture and competence - Building entrepreneurial organization - Entrepreneurial team – matching human resources needs and skills. UNIT III Business Plan Preparation: Identifying business opportunities and planning for business production - Innovation and creativity - Business promotion, process, stages, facilities and incentives. UNIT IV Launching of Small Business: Finance and Human Resource Mobilization - operations planning, market and channel selection, growth strategies, product launching. UNIT V Management of Small Business: Monitoring and Evaluation of Business, preventing sickness and rehabilitation of business units - Effective Management of small Business

Recommended Text

1. Michael H Morris, Entrepreneurship and Innovation in Corporations, 7th Edition, CENGAGE Learning, Delhi, 2008

2. Jerry Katz, Entrepreneurship Small Business, 5th edition, Tata McGraw-Hill Publishing Company Ltd., New Delhi, 2007.

Reference Books

1. Khanka S.S., Entrepreneurial Development, 1st edition, S.Chand and Company Limited, New Delhi, 2001.

2. Prasama Chandra, Projects: Planning, Analysis, Selection, Implementation and Reviews, 2nd edition, Tata McGraw-Hill Publishing Company Limited, New Delhi, 1996.

3. Robert D. Hisrich, Entrepreneurship, 6th edition, Tata McGraw-Hill Publishing Company Limited, New Delhi, 2006.

4. Cynthia Greene, Entrepreneurship, 9th Edition, CENGAGE Learning, Delhi, 2008



Title of the Course: Human Resources Management Paper Number: XIII


Semester 01

Credits 03



03 0 0 03


Understand the strategic role of human resources, Use job analysis and job descriptions as management tools. Hire to achieve organizational objectives. Evaluate employee job performance. Manage training and development of subordinates. Manage employee compensation. Manage effectively in a unionized environment.

Course Outline UNIT I Introduction to HRM: Nature and Scope of Human Resource Management – Evolution of Human Resource Management - HR environment - Functions of a human resources management – Role of HR professionals - Emerging HR Trends. UNIT II Acquisition of Human Resources: Human Resource Planning – Strategic Human Resource Management - HR Policies – Job analysis and Design - Use of Human Resource Information System – Recruitment: sources and choice – Selection process: types of tests, Group discussion, Interviews and its types and medical test. UNIT III Human resource development: Socialising - Training and development – HRD programmes - Performance appraisal – Career Planning and Development - Disciplinary Procedures - Collective Bargaining. UNIT IV Motivating Human Resources: Motivation Theories – Hawthorne Studies – Motivation and Morale – Participative Management – Quality Circle – Empowerment. UNIT V Maintenance of Workers: Compensation Management- Reward system – Labour relations – Knowledge creation and Management- Employee Welfare, Safety and Health – Employee benefits and services – Promotion , Transfers and separation – Human resource Accounting and Audit – Ethical issues in HR Management and International Human Resource Management.

Recommended Text 1. Prasad L.M., Human Resource Management, 2nd edition, Sultan Chand, New Delhi,

2001. 2. Ivancevich, Human Resource Management, 9th edition, McGraw-Hill, New Delhi, 2003.

Reference Books

1. Biswajeet Pattanayak, Human Resource Management, 3rd edition, Eastern Economy Edition, New Delhi, 2006.

2. Dessler, Human Resource Management, 3rd edition, Pearson Education Limited, New Delhi, 2002.

3. Aswathappa, Human Resource and Personnel Management, 7th edition, Tata McGraw Hill, New Delhi, 2005.

4. Ivancevich, Human Resource Management, 9th edition, McGraw-Hill, New Delhi, 2003.



Group II (Mathematics / Statistics / Economics)

Title of the Course: Resource Management Techniques Paper Number:XIX


03 Course Code

MAS 6361 1 2



Course Outline UNIT I: Introduction to Linear Programming: Introduction to applications of operations research in functional areas of management - Linear Programming - formulation, solution by graphical and simplex methods (Primal - Penalty, Two Phase), special cases - Dual simplex method - Principles of Duality - Sensitivity Analysis. UNIT II: Transportation Models (Minimizing and Maximising Cases) - Balanced and unbalanced cases - Initial Basic feasible solution by N-W corner rule, least cost and Vogel’s approximation methods - Check for optimality - Solution by MODI / Stepping Stone method - Cases of degeneracy - Transhipment Models. UNIT III: Game Theory-Two person zero sum games - Saddle point, dominance rule, convex linear combination (Averages), methods of matrices, graphical and LP solutions. UNIT IV: Replacement models - Individuals replacement models (With and without time value of money) – Group Replacement Models - Application of simulation techniques for decision making. UNIT V: PERT /CPM AND DECISION THEORY: Network Analysis - PERT / CPM – construction of networks, finding critical path, and project cost control - Decision making under risk – Decision trees – Decision making under uncertainty.

Recommended Text

1. F.S.Hillier and G.J.Lieberman, Introduction to Operations Research, McGraw Hill, 7th Edition, 2001.

2. Paneerselvam R., Operations Research, 4th edition, Prentice Hall of India, New Delhi, 2003.

Reference Books

1. Hamdy A Taha, Introduction to Operations Research, 7th edition, Prentice Hall India, New Delhi, 2004.

2. Gupta P.K, Man Mohan, Problem in Operations Research: Methods and Solutions, 9th edition, Sultan Chand and Sons, New Delhi, 2003.

3. Vohra N.D., Quantitative Techniques in Management, 2nd edition, Tata McGraw Hill, New Delhi, 2001.

4. Tulsian P.C, Vishal Pandey, Quantitative Techniques (Theory and Problems), 1st edition, Pearson Education (Asia), New Delhi, 2002.



Title of the Course: Time Series and Regression Analysis Paper Number: XIX


03 Course Code

MAS 6362 1 2


03 0 0 03


Students successfully completing M349R will develop understanding and skills in the following topics:Regression analysis:• Least square estimates of parameters- Single linear regression- Multiple linear regression- Hypothesis testing and confidence intervals in linear regression models - Testing of models, data analysis and appropriateness of models. Time series/forecasting: • Linear time series models-• Moving average, autoregressive and/or ARIMA models - Estimation, data analysis and forecasting with time series models - Forecast errors and confidence intervals

Course Outline

UNIT-I An Introduction to Forecasting. Forecasting and Data. Forecasting Methods. Errors in Forecasting. Choosing a Forescasting Technique. An Overview of Quantitative Forecasting Techniques. Simple Linear Regression. The Simple Linear Regression Model. The Least Squares Point Estimates. Point Estimates and Point Predictions. Model Assumptions and the Standard Error. Testing the Significance of the Slope and y Intercept. Confidence and Prediction Intervals. Simple Coefficients of Determination and Correlation. An F Test for the Model.

UNIT-II Multiple Linear Regression. The Linear Regression Model. The Least Squares Estimates, and Point Estimation and Prediction. The Mean Square Error and the Standard Error. Model Utility: R2, Adjusted R2, and the Overall F Test. Testing the Significance of an Independent Variable. Confidence and Prediction Intervals. The Quadratic Regression Model. Interaction. Using Dummy Variables to Model Qualitative Independent Variables. The Partial F Test: Testing the Significance of a Portion of a Regression Model

UNIT-III Model Building and Residual Analysis. Model Building and the Effects of Multicollinearity. Residual Analysis in Simple Regression. Residual Analysis in Multiple Regression. Time Series Regression : Modeling Trend by Using Polynomial Functions. Detecting Autocorrelation. Types of Seasonal Variation. Modeling Seasonal Variation by Using Dummy Variables and Trigonometric Functions. Growth Curves. Handling First-Order Autocorrelation. Exercises.

UNIT-IV Decomposition Methods. Multiplicative Decomposition. Additive Decomposition. The X-12-ARIMA Seasonal Adjustment Method. Exercises. Exponential Smoothing. Simple Exponential Smoothing. Tracking Signals. Holts Trend Corrected Exponential Smoothing. Holt-Winters Methods. Damped Trends and Other Exponential Smoothing Methods. Models for Exponential Smoothing and Prediction Intervals.

UNIT-V The Box-Jenkins Methodology: Nonseasonal Box-Jenkins Modeling and Their Tentative Identification. Stationary and Nonstationary Time Series. The Sample Autocorrelation and Partial Autocorrelation Functions: An Introduction to Nonseasonal Modeling and Forecasting. Tentative Identification of Nonseasonal Box-Jenkins Models. Estimation. Diagnostic Checking. Forecasting. A Case Study. Box-Jenkins Implementation of Exponential Smoothing. Transforming a Seasonal Time Series into a Stationary Time Series. Three Examples of Seasonal Modeling and Forecasting. Box-Jenkins Error Term Models in Time Series Regression.

Recommended Text 1. Bowerman, O’Connell, and Koehler, Forecasting, Time Series, and Regression,

Thompso Brooks/Cole(4th edition), 2005

Reference Books

1. P.J.Brookwell and R.A.Davis, Introduction to Time Series and Forecasting,

Springer(2nd Edn) New York, 2002

2. B.Kedem and K. Fokianos. Regression Models for Time Series Analysis, Wiley Interscience, ew York, New Jersey, 2002.



Title of the Course: International Economics Paper Number: XIX


03 Course Code

MAS 6363 1 2


03 0 0 03


This course provides you with economics tools to evaluate policies in international trade, foreign investment, immigration, exchange rate, fiscal and monetary programs. We will conduct research, present, debate about these policies.

Course Outline

UNIT I:

Importance of Trade and Trade Theories: Importance of the study of international economics; Inter-regional and

international trade; Theories of absolute advantage, Comparative advantage and opportunity cost; Heckscher - Ohlin

theory of trade - its main features, assumptions and limitations.

UNIT II: Gains from trade - Their Measurement and Distribution: Trade as an engine of economic growth; concepts of terms of

trade and their importance in the theory of trade.

UNIT III: Types of tariffs and quotas; Their impact in partial equilibrium analysis; Free trade and policy of tariffs in relation to

economic growth with special reference to India.

UNIT IV: Concepts and components of balance of payments; Equilibrium and disequilibria in balance of payment;

consequences of disequilibrium in balance of payments; Various Measures to correct deficit in the balance of

payments; Relative merits, Demerits and limitation of devaluation; functions of IMF, World Bank and GATT/ WTO;

Reform of the International Monetary system and India. Regional Trade agreements - SAARC & ASEAN.

UNIT V: Recent changes in the composition and direction of foreign trade : causes and effects of persistent deficit in balance

of payments; Measures adopted by the government to correct the deficit; Need for and rationale of trade reforms in

India (Including partial and full Convertibility of rupee); recent export and import policies of India; Role of Multinational

corporations in India.

Recommended Text 1. Krugman, P.R. and M. Obstgeld (1994), International Economics: Theory and policy, GJenview, foresman.

Reference Books

1. Kenan, P.B. (1994), The International Economy, Cambridge University Press, London. 2. Kindleberger, C.P. (1973), International Economics, R.D. Irwin, Home Wood. 3. Salvatore D.L. (1997), International Economics, Prentice Hall, Upper Saddle River,

N.J. 4. Sodersten, B.O. (1991), International Economics, Macmillan Press Ltd., London.



Group III (Actuary)

Title of the Course: Asset and Liability Management Paper Number: XX


Semester 03

Credits 03




To understand the various risks. To create an awareness about risk. To identify, measure mitigate, monitor and control risks.

Course Outline UNIT I Introduction – Importance of Asset Management for various Organsation.Risk and Return Relationship , Expected Rate of Return – Kinds of Risk – Trade of between Risk and Return – Measures of Investment Risk,Investors Utility Fucntion , Calculations using Risk Measures to compare Investment Opportunities and Distribution of Return (influence of Thickness of tails for Assessment of Risk). UNIT II Components of Assets and Liabilities – ACM Definition – Objectives – Improtance of Assets and Liability Management – Prerequisites for Operation of on Effectinve ACM System, Equity Valution-Fundamental Analysis-Technical Analysis – Capitalizing Earnings – P/E Ratio. UNIT III Efficient Market Hypothesis – Their forms and Consequance – Bond evaluation – Market Interest – Yield Spread – Yield to Maturinty – Yield Curve – Interest Rates – Yield Spread – Yield to Maturity – Yield Curve – Interest rate Swaps and Bond Swaps – Spot and Forward rates – Interest Rate Risk – Option Prices , Pledging Techniques and Variuation Methods . UNIT IV Models of the Term structure of Interest rates – Characteristics – Interest Rate Structure as a Computational tool for Pricing of Zero Coupon Bonds and Interest Rate Derivatives for a general one – Factors Differsion Model for the Risk free rate of interest – Limitations of one factor models and Tackling Issues. UNIT V Techniques involved in asset – Liability management – Gap Analysis – Simulation – dDration Analysis – Linear and Other Mathematical Methods

Recommended Text

1. Asset/liability Management of Financial Institutions, Leo M. Tilman, Euromoney Institutional Investor, 2003

2. The Handbook of Asset/Liability Management: State-of-the-Art Investment Strategies, Risk Controls and Regulatory Requirements,Irwin/Mcgraw hill 1996

Reference Books

1. Handbook of Asset and Liability Management: F… (Hardcover) by Alexandre Adam, john willy& sons 2007.

2. Asset/Liability Management of Financial Institutions, Leo M tilman, Euro money books, 2003.



Title of the Course: Security Analysis and Portfolio Management Paper Number: XX


Semester 03

Credits 03



03 0 0 03


To familiarize the student with basic concepts of Securities Analysis and Portfolio Management and its various tools and techniques to facilitate the managers in managing their portfolio.

Course Outline UNIT I Investment Setting: Securities and Securities Markets, - Financial System in India, - Investment avenues and their features, tax and transaction costs in investment UNIT II Money Market Securities: Money market securities - CDs, CPs, Eurodollars, REPO, banker’s acceptances,

government bills - Corporate bonds, types, characteristics, determinants of discount rates. UNIT III Shares and bonds – Types, characteristics, determination of issue price - Security market indexes - Risk and factors influencing security risk – Short positions, hedging, abridge - Bond portfolio management – Bond valuation, duration, yield spreads, bond portfolio immunization. UNIT IV Portfolio Management Share valuation – earnings approach – valve vs price - Technical analysis – Fundamental analysis – Portfolio return – Efficient frontiers, optimum portfolio. UNIT V Portfolio Performance Evaluation: Mutual funds – Sharpe’s performance measure, Treynor’s performance measure,

Jensen’s performance measure, comparison of performance measures.

Recommended Text

1. Reilly K. and Keith C. Brown, Investment Analysis and Portfolio Management, 7th edition, Frank Thomson South western, New Delhi, 2007.

2. Donald E. Fischer and Ronald J. Jordan, Security Analysis and Portfolio Management, 3rd edition, Prentice Hall of India Private Ltd., New Delhi, 2000.

Reference Books

1. Punithavathy Pandian, Security Analysis and Portfolio Management, 2nd edition, Vikas Publishing House Pvt., Ltd., 2001.

2. Chandra Prasanna, Investment Analysis and Portfolio Management, 2nd edition, Tata McGraw Hill, New Delhi, 2005

3. Bhalla V.K., Investment Management, 7th edition, Sultan Chand and Company Ltd., New Delhi, 2000.



Title of the Course: Financial Services Paper Number: XX


03 Course Code

MAS6373 02 03



Course Outline Unit -I INTRODUCTION TO FINANCIAL SERVICES Indian Financial System - Merchant banking in India- Merchant banking services, recent developments and challenges ahead, NBFC - Regulatory framework, RBI guidelines, SERA and SEBI guidelines. Unit -II ISSUE MANAGEMENT Capital issue management - designing capital structure and instruments, pricing of issue, marketing of issues, preparation of prospectus selection of bankers, advertising Consultants, etc., role of registrars, underwriting arrangements, offer for sale, Book Building, Green Shoe Option, E-IPO Private Placement, off - Shore issues, advertising strategies, NRI marketing, post issue activities. Unit -III FEE BASED FINANCIAL SERVICES Mergers and Acquisitions - Portfolio management services, credit syndication, credit Rating, mutual Funds, types, business valuation. Unit -IV FUND BASED FINANCIAL SERVICES Leasing and Hire Purchasing - basics of lease financing, hire purchase finance, financial evaluation, tax implication, consumer credit - Credit Cards - Recent developments in Factoring and forfeiting. Unit -V OTHER FUND BASED SERVICES Bills discounting - Debt Securitization - Housing finance - Insurance Services, venture Capital Financing - Stock Broking - Credit Rating - Real Estate Financing.

Recommended Text

1. Khan M.Y., Financial Services, 2nd Edition, Tata McGraw Hill publishing company Ltd., New Delhi, 2001.

2. Saunders, Financial Markets and Institutions, 5th edition, Tata McGraw Hill publishing company Ltd., New Delhi, 2006.

Reference Books

1. Khan, Indian Financial System, 5th edition, Tata McGraw Hill publishing company Ltd., New Delhi, 2004.

2. Bhole L.M., Financial Institutions and Markets, 4th edition, Tata McGraw Hill publishing company Ltd., New Delhi, 2004.

3. David O. Beim and Charles, Emerging Financial Markets, 4th edition, Tata McGraw Hill publishing company Ltd., New Delhi, 2001.

kalasalingam university anand nagar,...

Documents