Financial Engineering

CFA General
#1

Hello All,

I was wondering if you guys could tell me sth about going into “Financial Engineering” ? And if there are some good programs out there to get into this field.

Thank You.

#2

I think you will find better answers on this site:

https://www.quantnet.com/

I don’t really know much about it, but from what I hear, the general track is Economics, Finance, Math or Statistics undergraduate major into a Financial Engineering program. To prepare yourself, I would take as many math and computer science courses as you can, especially real analysis.

#3

I was on this path during college…Economics and Mathematics. Basic requirements to be competitive and have a good shot at a good MFE program.

Math:

Sequence of Calculus up to multivariable calculus Linear Algebra Ordinary Differential Equations Partial Differential Equations Statistics Probability Theory Numerical Analysis Real Analysis (1 or 2 courses, not required but looks good) Finance/Economics:

Not many classes really required but will be helpful to have:

Microeconomics Macroeconomics Accounting Basic finance (a course on financial markets and different financial instruments) Econometrics would be a nice compliment too Programming: C++ (if you dont take this as an undergrad you must find some way of becoming proficient in this language) VBA R (optional) Python (optional)

GRE:

Before the grading change, 800Q was required and >600V was recommended but not required (could even be in the 500’s without hurting you too much), probably >4.0 on AWA. With new GRE (not so new anymore) 167+Q and I’m not sure about verbal, maybe 157+? CFA also helps for admissions into places like Berkeley where the MFE program is housed in the business school. Does not help much for places like Columbia where the program is in the engineering department. Hope that helps and unless you were a Math or Computer Science major, you probably shouldn’t apply.

#4

I was very disappointed that my university never had enough interested students to run a PDE class; I would have enjoyed it.

#5

^You would have, I’d say def one of the tougher classes I took but very interesting. ODE was so simple…but then PDE was a completely different game.

#6

In my experience, if somebody asks “How do I get into this highly technical field where you need a ridiculous amount of quantitative skills?”, then they probably have absolutely no idea what it entails and will probably not succeed.

I, for one, have never asked “How do I go get into nuclear quantum phyics?” I know that I am about 50 math classes shy of being able to understand that kind of stuff. And I have zero desire to EVER take another math class.

#7

I’ve had the pleasure of teaching a class in linear algebra and differential equations. It’s quite interesting how linear algebra can be applied to a set of linear differential equations (i.e., the solution set to a homogeneous set of linear differential equations is a vector space; the solution set to a nonhomogeneous set of linear differential equations is a vector space plus any specific solution).

My background’s primarily pure math: algebra, topology, number theory. I’d love to get a PhD in algebraic topology: knot theory, in particular.

#8

A lot of people who ask this ask because they see how competitive it is to get into a good MBA program and then hear about financial engineering and say “Hmm I bet way less people try to get into Financial Engineering, maybe I can get into one of those good programs…I mean I took Algebra in high school and I like math.” Fools, then comes the reality check.

#9

I wouldn’t worry about it. Nuclear (practically redundant) quantum physics doesn’t pay nearly as well as tax accounting, financial planning, or portfolio management.

#10

This reminds me of a person who asked on a music website, “I’m a concert pianist, and need a piano to practice on. I need the very best piano money can buy. It has to be a grand piano. An upright won’t do. What kind of piano should I get?”

Well, if you’re a professional piano player, don’t you already have one? Do you really need the advice of a bunch of anonymous people on the internet? Don’t you know how to pick out a piano, since you’ve probably been playing them for 20 years? Just by mere virtue of the fact that you’re asking this question, I’m betting you’re not really a professional piano player.

The same is true for the person who asks, “How do I get into Financial Engineering?” If you have to ask, you’re probably not qualified.

#11

He never claim to be a professional Financial Engineer.

Just like a 20 year old may go around and ask, “how does one become a neurosurgeon?”

You can’t just say, “well if you are an experienced doctor, you should know! If you ahve to ask, you are not qualified!”

He may not be a financial engineer tomorrow. Maybe he will become one, in 15, 20 years, who knows???

#12

It’s ok to ask this if you are about to enter college or in college and deciding on a career path, but OP is clearly at the least a senior in college because he is a level 1 candidate, it is too late by now. It would seem he has likely graduated and is thus too late to become a financial engineer.

#13

REALLY? Just because he is a senior (could be 22 years old), it would mean he is too late to ever become a financial engineer???

what kind of world is this?

people on AF are more age obsessed than japanese people…

#14

If he did not take the required math courses, he would have to repeat undergrad to become one. Taking the basics at community college might suffice, but the advanced courses are usually only available at 4-year institutions…I doubt he will repeat undergrad…so yes…too late. Some careers are just that way.

#15

so what? many people have more than one degrees these days, or go onto masters and phD, which may take even more time to complete.

IMHO, it’s not too late at all.

Did you know exactly what you want to do for the rest of your life when you were 18 applying to university?? i know i didn’t.

#16

This is true. You could get a Bachelor’s in Cultural Anthropology then go get a Master’s in Math.

But then you’ll have to go back and take Pre-Cal, Calculus 1, 2, and 3, Linear Algebra, Differential Equations 1 and 2, Stochastic Calculus, Elementary Analysis, Geometry, and Advanced Geometry. Once you’ve taken all of these, then you can start on your Master’s work.

#17

You probably wouldn’t need to take stochastic calculus, but you probably would need to take a first course in Abstract Algebra and a first course in (Point-Set) Topology.

#18

Nana, you cant get a masters or phd in math or engineering without a strong undergrad curriculum in math or engineering…the programs will not accept you, and if they do, they are a bad program and you will not make any money and die.

#19

Amen!

I graduated with degrees in Accounting and Mathematics. Unfortunately, only my Econ classes (from my Accounting degree) qualified as general ed for my math degree, so, essentially, I got a degree in Math and added every business course on top of it.

Unlike many degrees, Math definitely builds from its foundations. You cannot pass a (graduate level) Real Analysis course without a(n) (undergraduate) course in point-set topology, for example. If you don’t know that compact sets are closed and bounded, you’re sunk.

#20

I can re-do my undergrad and still go to med school and become a surgeon but a 22 year old senior will not be accepted to any programs that will eventually lead him to become a financial engineer???

I don’t see how this makes any sense!