Description: Presented at May 2005 Spring Meeting. This session examines financial, economic and traditional actuarial methodological approaches used for solving investment-risk problems.

Description: This session reviews the past half century's advances in finance such as immunization and hedging theory, modern portfolio theory, capital asset pricing model, option-pricing theory, term structure of interest rate models, and so on. Their application to asset and liability management in insurance and pensions is highlighted and discussed.