Financial engineering is an interdisciplinary subject which combines finance, mathematics and computer science. Its courses are usually taught jointly by the business school, mathematics department and engineering college of the university. Because American financial engineering courses focus on the financial field, they are far more in-depth than MBA financial courses, and usually include stock market analysis, portfolio analysis, futures and options, asset pricing, capital budgeting, fixed income analysis, interest rate model, financial risk management and other courses. Financial engineering is the fastest developing discipline in recent years, and its research scope covers four fields: computer, finance, mathematics and statistics. Due to the rapid changes in the financial environment in recent years, coupled with the progress of science and technology and the internationalization of the market, the types of enterprises are becoming more and more diversified. In this environment, the market needs more kinds of financial products as investment tools. Faced with such a complex demand, designing a financial product requires the concept of finance, the assistance of mathematics and statistics, and financial knowledge. Thus, the development prospect of financial engineering is undoubtedly very broad.
How many years does MFE study?
MFE teaching lasts only 1-2 years, and most schools do not provide scholarships (with a few exceptions). But the investment cycle is short and the return is fast. Graduates have the opportunity to engage in quantitative and technical jobs in financial services industries such as investment banks, fund companies and risk management departments or other related industries, and also provide opportunities for people with science and engineering backgrounds to change careers. So the number of applicants for this project is very large, and it is increasing year by year. This year, the director of the FE program at Cornell University said that their applicants were twice as many as the year before.
Schools that open MFE in the United States
There are not many schools offering MFE, and there are many applicants for financial engineering in the United States, and the competition is fierce. MFE likes students with engineering background (of course, students with financial background are admitted every year, but they are all excellent or have taken many math classes). Applicants should have very high GPA and G/T scores, internship experience in finance and excellent personal statement.
MFE course
MFE is a non-constant quantitative subject. I like students with science and engineering background because they have a good quantitative foundation. Of course, if you don't have a background in mathematics and physics, or feel that your foundation in mathematics and physics is not good, you can make up for it by taking some courses in the Department of Mathematics.
The following are some American financial engineering courses I recommend (different schools have different preferences, but they are also comprehensive and in-depth):
Calculus, linear algebra
Probability theory, measure theory
mathematical statistics
partial differential equation
Real variable function, stochastic process
numerical method
C++ Programming, Algorithms and Data Structures
Application requirements of MFE prestigious schools in the United States
Compared with finance, there are more schools offering financial engineering majors among the ranked schools, and many schools rank very high in the overall ranking, such as Stanford, Columbia, Chicago, Cornell and other famous schools, with only financial engineering majors and no financial majors. Financial engineering is usually an interdisciplinary project run by several colleges or departments, such as mathematics department, engineering college and business college. It is not difficult to see from this point that the requirements of this major focus on the background of mathematics and physics, so students majoring in mathematics, statistics and computer have great advantages in application. There is no strict requirement for financial expertise in this major, which has been clearly pointed out by the University of Chicago? If you want to apply for financial engineering and don't understand finance, we can teach you. If you don't know math, please go back and learn it again. ? It can be seen that the basic knowledge of mathematics is the key to apply for this major. Financial engineering is not a purely business school project, so GMAT is not necessary, but GRE is required, and some schools accept both. In terms of language, high-ranking schools also have high requirements for this. iBT is at least 100, and Chicago also requires at least 26 items. Financial engineering uses mathematics as a tool to solve financial problems. As a new discipline, it has great development prospects.
American MFE employment
Regarding employment, the direction of financial development at home and abroad is generally the same. Microfinance has the most promising prospect. But if you are interested in doing research, the macro direction is relatively appropriate. You can look at the more potential professional directions: corporate finance, risk management and control, financial markets, actuarial science, and securities investment.
Through the above analysis, you should know something about the MFE of studying in the United States. I hope the above information is helpful to you.