Master of Financial Engineering
Overview
A Master of Financial Engineering (MFE) is a specialized postgraduate degree that focuses on the application of mathematical methods and programming skills to solve complex problems in finance. This program is designed for individuals who are interested in pursuing careers in quantitative finance, risk management, financial information systems, and financial product development.
History
The Master of Financial Engineering program was first introduced in the late 1980s as a response to the increasing demand for professionals who could apply mathematical and computational methods to finance. The first MFE programs were established at the University of California, Berkeley, and Carnegie Mellon University. Since then, the number of universities offering MFE programs has grown significantly, reflecting the increasing importance of quantitative methods in the financial industry.
Curriculum
The curriculum of a Master of Financial Engineering program typically includes courses in financial theory, mathematical modeling, computational methods, and programming. The program also includes courses in risk management, financial derivatives, and portfolio management.
The MFE curriculum is designed to provide students with a deep understanding of the theoretical foundations of finance, as well as the practical skills needed to apply these theories to real-world financial problems. The curriculum is typically structured to allow students to gain a broad understanding of the field of financial engineering, while also allowing them to specialize in areas of particular interest.
Admission Requirements
Admission to a Master of Financial Engineering program typically requires a bachelor's degree in a quantitative field such as mathematics, physics, engineering, or economics. Applicants are also expected to have a strong background in calculus, linear algebra, and probability theory. Some programs may also require applicants to have programming skills in languages such as C++, Python, or R.
In addition to these academic requirements, applicants are often required to submit scores from standardized tests such as the Graduate Record Examination (GRE) or the Graduate Management Admission Test (GMAT). Some programs may also require applicants to have relevant work experience in the financial industry.
Career Opportunities
Graduates of Master of Financial Engineering programs typically find employment in the financial industry, working in areas such as quantitative finance, risk management, financial information systems, and financial product development. Common job titles for MFE graduates include quantitative analyst, risk manager, financial engineer, and derivatives trader.
In addition to these traditional career paths, MFE graduates may also find opportunities in related fields such as financial technology (fintech), data science, and financial consulting.