FinancialInstruments and Investment of Insurance

Release Date: 2017-09-20

Course Name	Financial Instruments and Investment of Insurance				Course Number				Z1603006
Course Semester	2		Course Time	36		Credit				2
Course Type	☑Obligatory Courses □Elective Courses
Institute	Master of Insurance Education Center			Applicable Major			Master of Insurance
Assessment method	☑Examination □ Test
Advanced courses	Calculus, Statistics, Economics, Insurance
Teacher	Xu Yong Jia
Teaching Objectives
This is intended as a one semester course for the students of MI. The primary goal of the course is to let students understand and master the financial markets, financial instruments and their risk characteristics, and the characteristics and methods of asset liability management for insurance enterprises.
Teaching Contents
The course includes the following contents. 1. The financial environment, which have become an increasingly important means of investing for individual investors. 2. Modern portfolio theory. It focuses closely on how to describe investors risk preferences and how they bear on asset allocation, then turns to portfolio optimization as well as its implementation using index models. 3. The capital asset pricing model, multifactor descriptions of risk and the arbitrage pricing theory. It is the implications of that theory for the equilibrium structure of expected rates of return on risky assets. This part also covers the efficient market hypothesis, including its rationale as well as evidence that supports the hypothesis and challenges it. 4. Security valuation. This part treats fixed-income securities bond - pricing, term structure relationships, and interest-rate risk management. 5. Pricing of equity securities and derivative securities. It introduces how to evaluate equity securities and the derivative securities such as futures and options. 6. The characteristics and methods of asset liability management for insurance enterprises. It includes characteristics of cash flows of in insurance enterprises, the methods of asset liability management such as immunization method and cash flow matching method.
Outline Designer		Xu Yong Jia		Date				2015..