Math background for financial engineering

  • Thread starter strugglinginmat
  • Start date
  • Tags
    Engineering
In summary: And so on.In summary, the individual has a B.S in biochemistry and a minor in mathematics, but has taken additional math courses and is interested in pursuing financial mathematics. They are considering applying for a math finance program or a masters in applied math to strengthen their skills, and are seeking suggestions. Some recommended prerequisites for a financial engineering program include two years of college mathematics, calculus-based probability and statistics, basic microeconomic theory, introductory finance, accounting principles, and computer programming experience. It is also suggested to pursue additional study in advanced calculus and partial differential equations for a stronger background in the program.
  • #1
strugglinginmat
7
0
I have a B.S in biochemistry and a minor in mathematics. In actuality I have taken additional courses after fulfilling the requirement for the math minor.
The courses that I have taken are: Cal I, II, III, Linear algebra, Mathematical stats I & II, Differential Equation. I am interested in doing financial mathematics so I am takin some more math classes. I am takin graduate linear algebra and multivariate calculus. I will be takin basic probability class next semester. I have all As in my undergraduate class but was not able to pull that off for the summer classes. I feel like my math backgound is not strong enough for math finance so I am thinking of doing masters in applied math to strengthen my math, computing skills. I am havin difficulty deciding as to apply for the math finance program for next year with this profile or goin for masters in applied math. Any suggestions will be greatly appreciated.
thanks
 
Physics news on Phys.org
  • #2
Here are the http://interpro-academics.engin.umich.edu/fep/prospective_students/admissons.htm [Broken]:
  • Two years of college mathematics including multivariable calculus, differential equations and linear algebra
  • Two terms of calculus-based probability and statistics
  • Basic microeconomic theory/time value of money/interest
  • An introductory finance course
  • Accounting principles
  • Computer programming experience
I would particularly emphasize probability and statistics and computer programming.

You might also want to read Mark Joshi's essay, "On Becoming a Quant": http://www.markjoshi.com/downloads/advice.pdf
 
Last edited by a moderator:
  • #3
It seems like I have all the math requirements for U of Michigan. But I want to apply to programs where they want more quantitative skills because that seems the most valued thing for this degree. For instance NYU's program is very mathematical. I am wondering if I am cut for these kinds of program. thanks
 
  • #4
"Financial Engineering"??

Sounds like a euphamism for cooking the books...:rolleyes:
 
  • #5
DaveC426913 said:
"Financial Engineering"??

Sounds like a euphamism for cooking the books...:rolleyes:
That's what I thought when I first heard the term as well. :tongue: In fact, there are three different names for what is essentially the same discipline: "mathematical finance", "financial engineering", and "econophysics", depending on whether one comes from a math, engineering, or physics background.

Getting back to the original question, even if you've already covered the basic prerequisites, you may want to pursue additional study in some of them. For example, an advanced calculus/basic analysis course may be helpful for the graduate-level probability/random processes/stochastic calculus course that you will be required to take in the financial engineering program. A junior/senior level course in partial differential equations might be useful background for the specialized PDE course offered in the financial engineering program.
 
Last edited:

1. What level of math background is required for financial engineering?

The level of math background required for financial engineering can vary depending on the specific program or institution. However, a strong foundation in calculus, linear algebra, and probability/statistics is typically necessary. It is also beneficial to have knowledge of differential equations, optimization, and numerical analysis.

2. Do I need to have a degree in mathematics to pursue financial engineering?

While a degree in mathematics or a related field is often preferred, it is not always a requirement for pursuing financial engineering. Many programs also accept students with backgrounds in economics, finance, engineering, or other quantitative fields.

3. How important is programming knowledge in financial engineering?

Programming knowledge is becoming increasingly important in the field of financial engineering. Many programs now require students to have a basic understanding of programming languages such as Python, R, or MATLAB. Additionally, proficiency in Excel is essential for financial engineering.

4. Can I learn the necessary math skills for financial engineering on my own?

While it is possible to learn some math skills on your own, it is generally recommended to have a formal education in mathematics or a related field. This will ensure that you have a thorough understanding of the necessary concepts and techniques for financial engineering.

5. What are some resources for improving my math skills for financial engineering?

There are many resources available for improving your math skills for financial engineering. Some options include taking courses at a university, attending workshops or seminars, using online learning platforms, and practicing with textbooks and problem sets. It is also beneficial to seek guidance from a mentor or tutor who has experience in the field.

Similar threads

Replies
16
Views
1K
Replies
6
Views
820
  • STEM Academic Advising
Replies
11
Views
2K
  • STEM Academic Advising
Replies
8
Views
911
Replies
7
Views
793
  • STEM Academic Advising
Replies
2
Views
1K
  • STEM Academic Advising
Replies
21
Views
2K
  • STEM Academic Advising
Replies
9
Views
1K
  • STEM Academic Advising
Replies
4
Views
941
Replies
4
Views
1K
Back
Top