Friday, September 6, 2013

Masters in Quantitative Finance

  1. Masters in Quantitative Finance

    A relatively new alternative to computer science in the financial field


    From Wikipedia, the free encyclopedia

    A masters degree in quantitative finance concerns the application of mathematical methods to the solution of problems in financial economics.[1] There are several like-titled degrees which may further focus on financial engineering, financial risk management, computational finance and/or mathematical finance. In general, these degrees aim to prepare students for roles as "quants" (quantitative analysts), including analysis, structuring, trading, and investing; in particular, these degrees emphasize derivatives and fixed income, and the hedging and management of the resultant market and credit risk. Formal masters-level training in quantitative finance has existed only since 1990. [2]

    Contents
      [hide] 
    1 Structure
    2 Comparison with other qualifications
    3 History
    4 See also
    5 External links and references

    Structure

    The curriculum builds quantitative skills, and simultaneously develops the underlying finance theory. The quantitative component draws on applied mathematics, computer scienceand statistics - and emphasizes stochastic calculus, numerical methods and simulation techniques [3]; some programs also focus on econometrics / time series analysis [4][5].[spam link?] The theory component usually includes a formal study of financial economics, addressing asset pricing and financial markets; some programs may also include general coverage of economics, accounting, corporate finance and portfolio management [6]. The components are then integrated, addressing the modelling, valuation andhedging of equity derivatives, commodity derivatives, Foreign exchange derivatives, and fixed income instruments and their related credit- and interest rate derivatives. Some programs also cover quantitative portfolio management and construction [7][8][9]. See List of finance topics: Financial mathematics.

    The title of the degree will depend on emphasis [10], the major differences between programs being the curriculum’s distribution between mathematical theory, quantitative techniques and financial applications [11].[spam link?] The more theoretically oriented degrees are usually termed “Masters in Mathematical Finance” or “Masters in Financial Mathematics” while those oriented toward practice are termed “Masters in Financial Engineering” (MFE or MSFE), “Masters in Computational Finance” (MCF or MSCF), or sometimes [12][13], simply "Masters in Finance" (MFin). “Masters in Quantitative Finance” is the more general degree title, although "MQF" degrees are often less theoretical and more practical. The practice oriented programs are often positioned as professional degrees (and in the United States, are sometimes offered as Professional Science Masters[14]).

    The program is usually one to one and a half years in duration, and may additionally include a thesis component. Entrance requirements are generally multivariable calculus, linear algebra, differential equations and some exposure to computer programming (usually C++) [15]; programs emphasizing financial mathematics may require some background inMeasure theory.

    Comparison with other qualifications[edit source | editbeta]

    The program differs from that of a Master of Science in Finance (MSF), and an MBA in finance, in that these degrees aim to produce finance generalists as opposed to "quants", and therefore focus on corporate finance, accounting, equity valuation and portfolio management. The treatment of any common topics - usually "derivatives", financial modeling, andrisk management - will be less (or even non) technical. Entrance requirements are similarly less mathematical. Note that Master of Finance (M.Fin.) and MSc. in Finance degrees, as distinct from the MSF, may be substantially similar to the MQF.

    There is some overlap with degrees in actuarial science [16],[spam link?] and both degrees are occasionally offered by the same department.[17] Nevertheless, the programs are almost always separate and distinct [18]. Specifically, whereas actuarial programs cover risk and uncertainty as applied to pensions, insurance and investments, quantitative finance programs are broader (although offer less depth in these areas), and prepare graduates for various of the highly numerate roles in finance [19] - and for other areas that require "quants" [20].

    There is similarly overlap with a Master of Financial Economics, although the emphasis is very different. That degree focuses on the underlying economics, and on developing and testing theoretical models, and aims to prepare graduates for research based roles and for doctoral study. The curriculum therefore emphasises coverage of financial theory, and ofeconometrics, while the treatment of model implementation (through mathematical modeling and programming), while important, is secondary. Entrance requirements are similarly less mathematical. Some Financial Economics degrees are substantially quantitative, and are largely akin to the MQF.

    For students whose interests in finance are commercial rather than academic, a Masters in Quantitative Finance may be seen as an alternative to a PhD in finance. At the same time though, “Masters in Mathematical Finance” programs are often positioned as providing a basis for doctoral study.

    History[edit source | editbeta]

    The first quantitative finance masters programs were offered by Illinois Institute of Technology in 1990, under Dr. Michael Ong. [21][spam link?] (The programs offered were the "Masters of Science in Quantitative Finance" and "Masters of Science in Financial Markets and Trading", and were combined in 2008 to become the "Masters of Science in Finance, with Financial Engineering Concentration".[22]) The NYU-Poly Financial Engineering degree was the second program of its kind.[23] Carnegie Mellon introduced its "Masters of Computational Finance" program in 1994.[24] OGI's Computational Finance Program (1996, now discontinued) was the first such program based in a computer science department. [25][26] Other pioneering programs include those at Columbia, Princeton, and MIT. More recently, undergraduate programs have been offered, both in the US (e.g. Ball State [27], James Madison [28], McIntire [29]) and internationally (e.g. City University London [30], HKUST [31], UNISA [32]). Subsequent growth in the number and location of programs has paralleled the growth of financial engineering - with its growing importance across all aspects of the financial services industries - and of risk management as professions.[33]

    Careers in Quantitative Finance Add Up

    Job Seekers with a Mix of High-Level Math, Logic and Business Skills in Demand

    Mathematicians with personality are in short supply, so if you love math and finance and are willing to head to graduate school, a shift into a quantitative finance career could pay off for you.
    Quantitative analysts are modern alchemists who transform raw data into intelligent business strategies. The ability to slice and dice data cuts across industry lines. For instance, credit card company analysts develop mathematical algorithms to detect fraud, grocery store analysts interpret data on shoppers' habits and investment banking financial engineers support equity option trading.
    To break into the field, start with a business, finance, economics, math or engineering undergraduate degree, and then go for your master's or, preferably, a PhD in econometrics, statistics, industrial engineering, finance, math, operations research or quantitative analysis. Unless Wall Street is your goal, that degree doesn't need to be from a top engineering or business school, because the supply of US graduates comfortable with the high-level math analysts use is smaller than the supply of jobs, says Rita Raz, president of Analytic Recruiting. "Get a good master's from a state university, and you're marketable," she says.
    Foreign Competition
    Your biggest competitors for entry-level jobs won't be American. "A lot of American kids dodge the quantitative courses," she says. "Students coming from China and India have it over the US kids on taking hard-core quantitative courses, but [foreign students] have to develop the ability to communicate and sell.
    With quantitative skills in such demand in finance, job candidates from outside the US who have the right analytical degree will find companies willing to sponsor them -- if the visas are available.
    Seeing Green
    How much you make in statistical analysis depends upon the degree you obtain. With a master's in statistics from a state university, expect around $65,000 in New York City, $50,000 to $55,000 in a lower-cost market. With a PhD in quantitative analysis, you're looking at $75,000, and unless you go into investment banking, you won't be working 70 or 80 hours a week, Raz says.
    Wall Street Tougher to Crack

    Investment banking is extremely competitive at the entry level, so quality of training and education matter, says E. Daniel Raz, who handles investment banking recruitment for Analytic Recruiting. "If we are talking about [an analytic] PhD from a top school, the salary could be anywhere from $85,000 to $115,000 in New York City," he says. "The bonus could go as high as 50 percent of [the] base salary.



    Master of Quantitative Finance Program | Rutgers Business School

    www.business.rutgers.edu/mqf

    Ranked a "Top 10 Quant School" by Wall Street executives. Financial managers and related professionals are playing an increasingly important role in mergers, ...
  2. en.wikipedia.org/wiki/Master_of_Quantitative_Finance


    masters degree in quantitative finance concerns the application of mathematical methods to the solution of problems in financial economics.[1] There are ...

    Master of Quantitative Finance

    From Wikipedia, the free encyclopedia
    masters degree in quantitative finance concerns the application of mathematical methods to the solution of problems in financial economics.[1] There are several like-titled degrees which may further focus on financial engineeringfinancial risk managementcomputational finance and/or mathematical finance. In general, these degrees aim to prepare students for roles as "quants" (quantitative analysts), including analysisstructuringtrading, and investing; in particular, these degrees emphasize derivatives and fixed income, and the hedging and management of the resultant market and credit risk. Formal masters-level training in quantitative finance has existed only since 1990. [2]

    Structure[edit source | editbeta]

    The curriculum builds quantitative skills, and simultaneously develops the underlying finance theory. The quantitative component draws on applied mathematicscomputer scienceand statistics - and emphasizes stochastic calculusnumerical methods and simulation techniques [3]; some programs also focus on econometrics / time series analysis [4][5].[spam link?] The theory component usually includes a formal study of financial economics, addressing asset pricing and financial markets; some programs may also include general coverage of economicsaccountingcorporate finance and portfolio management [6]. The components are then integrated, addressing the modellingvaluation andhedging of equity derivativescommodity derivativesForeign exchange derivatives, and fixed income instruments and their related credit- and interest rate derivatives. Some programs also cover quantitative portfolio management and construction [7][8][9]. See List of finance topics: Financial mathematics.
    The title of the degree will depend on emphasis [10], the major differences between programs being the curriculum’s distribution between mathematical theory, quantitative techniques and financial applications [11].[spam link?] The more theoretically oriented degrees are usually termed “Masters in Mathematical Finance” or “Masters in Financial Mathematics” while those oriented toward practice are termed “Masters in Financial Engineering” (MFE or MSFE), “Masters in Computational Finance” (MCF or MSCF), or sometimes [12][13], simply "Masters in Finance" (MFin). “Masters in Quantitative Finance” is the more general degree title, although "MQF" degrees are often less theoretical and more practical. The practice oriented programs are often positioned as professional degrees (and in the United States, are sometimes offered as Professional Science Masters[14]).
    The program is usually one to one and a half years in duration, and may additionally include a thesis component. Entrance requirements are generally multivariable calculuslinear algebradifferential equations and some exposure to computer programming (usually C++[15]; programs emphasizing financial mathematics may require some background inMeasure theory.

    Comparison with other qualifications[edit source | editbeta]

    The program differs from that of a Master of Science in Finance (MSF), and an MBA in finance, in that these degrees aim to produce finance generalists as opposed to "quants", and therefore focus on corporate financeaccountingequity valuation and portfolio management. The treatment of any common topics - usually "derivatives", financial modeling, andrisk management - will be less (or even non) technical. Entrance requirements are similarly less mathematical. Note that Master of Finance (M.Fin.) and MSc. in Finance degrees, as distinct from the MSF, may be substantially similar to the MQF.
    There is some overlap with degrees in actuarial science [16],[spam link?] and both degrees are occasionally offered by the same department.[17] Nevertheless, the programs are almost always separate and distinct [18]. Specifically, whereas actuarial programs cover risk and uncertainty as applied to pensionsinsurance and investments, quantitative finance programs are broader (although offer less depth in these areas), and prepare graduates for various of the highly numerate roles in finance [19] - and for other areas that require "quants" [20].
    There is similarly overlap with a Master of Financial Economics, although the emphasis is very different. That degree focuses on the underlying economics, and on developing and testing theoretical models, and aims to prepare graduates for research based roles and for doctoral study. The curriculum therefore emphasises coverage of financial theory, and ofeconometrics, while the treatment of model implementation (through mathematical modeling and programming), while important, is secondary. Entrance requirements are similarly less mathematical. Some Financial Economics degrees are substantially quantitative, and are largely akin to the MQF.
    For students whose interests in finance are commercial rather than academic, a Masters in Quantitative Finance may be seen as an alternative to a PhD in finance. At the same time though, “Masters in Mathematical Finance” programs are often positioned as providing a basis for doctoral study.

    History[edit source | editbeta]

    The first quantitative finance masters programs were offered by Illinois Institute of Technology in 1990, under Dr. Michael Ong[21][spam link?] (The programs offered were the "Masters of Science in Quantitative Finance" and "Masters of Science in Financial Markets and Trading", and were combined in 2008 to become the "Masters of Science in Finance, with Financial Engineering Concentration".[22]) The NYU-Poly Financial Engineering degree was the second program of its kind.[23] Carnegie Mellon introduced its "Masters of Computational Finance" program in 1994.[24] OGI's Computational Finance Program (1996, now discontinued) was the first such program based in a computer science department. [25][26] Other pioneering programs include those at ColumbiaPrinceton, and MIT. More recently, undergraduate programs have been offered, both in the US (e.g. Ball State [27]James Madison [28]McIntire [29]) and internationally (e.g. City University London [30]HKUST [31]UNISA [32]). Subsequent growth in the number and location of programs has paralleled the growth of financial engineering - with its growing importance across all aspects of the financial services industries - and of risk management as professions.[33]



    See also[edit source | editbeta]

    External links and references[edit source | editbeta]


  3. MS in Quantitative Finance - Fordham Graduate School of Business ...

    www.bnet.fordham.edu › ... › MS Programs › MS in Quantitative Finance

    The Master of Science in Quantitative Finance (MSQF) at Fordham Graduate School of Business is a full-time program developed with the help of financial ...

  4. Quantitative & Computational Finance (QCF) Program: GT

    www.qcf.gatech.edu/

    The main objective of the Master of Science degree program in Quantitative and Computational Finance at Georgia Tech is to provide students with the practical ...

  5. MS in Mathematical Finance » School of Management | Boston ...

    management.bu.edu/graduate/graduate-programs/msmf/

    Master of Science in Mathematical Finance (MSMF). The 17-month Master of Science in Mathematical Finance (MSMF) program focuses on the crux of ...

  6. Bradley University: MS Quantitative Finance

    www.bradley.edu › ... › Undergraduate Programs › Graduate Program

    MS Quantitative Finance. Succeeding as a quantitative finance professional leaves no room for the amateur. Employers want more than a math whiz, finance ...

  7. ProgramQuantitative Finance, M.S. - Hofstra University - Acalog ...

    bulletin.hofstra.edu/preview_program.php?catoid=29&poid=3433

    Offered by the Department of Finance, the Master of Science in Quantitative Financeoffers advanced instruction to students with a quantitative background.

  8. Financial Mathematics - Stanford University

    finmath.stanford.edu/

    PKU-Tsinghua-Stanford Conference in Quantitative Finance, May 10-11, 2013 ... The Financial Math Program provides a masters-level education in applied and ...

  9. MSc UZH ETH in Quantitative Finance

    www.msfinance.ethz.ch/

    This program is the core of the Center of Competence Finance in Z├╝rich. The programis substantially supported by the Strategic Excellence Projects (SEP) of ...



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