The vast complexity of financial markets compels industry to look for experts who not only understand how they work, but also possess the mathematical knowledge to uncover their patterns and the computer skills to exploit them. To achieve success, banking and securities industries must come to grips with securities valuation, risk management, portfolio structuring, and regulation-knowledge embracing applied mathematics, computational techniques, statistical analysis, and economic theory. The goal of the degree is to produce graduate who can make pricing, hedging, trading, and portfolio-management decisions in the financial services enterprise. With sharply honed practical skills complimented by strong technical elements, graduates are in demand in the industries-investment banking, risk management, securities trading and portfolio management. Students wishing to enroll in any of the FE programs must have an undergraduate degree in an engineering or science discipline and strong quantitative background.
The master’s degree requires 10 courses (30 credits): six core required courses and four elective courses.
Financial Engineering Curriculum:
Required Core Courses
| FE 610 | Stochastic Calculus for Financial Engineers | 3 |
| FE 620 | Pricing and Hedging | 3 |
| FE 621 | Computational Methods in Finance | 3 |
| FE 630 | Portfolio Theory and Applications | 3 |
| FE 680 | Advanced Derivatives | 3 |
| | | |
| FE 800 | Project in Financial Engineering | 1-6 |
| | Or | |
| FE 900 | Master's Thesis in Financial Engineering | 1-10 |
Elective Courses
Students are encouraged to take an integrated four-course sequence leading to a graduate certificate for the four electives; or choose the electives from our course catalog. All elective courses must be approved by an advisor. A list of available graduate certificates is included in the School of Business Graduate Certificate section of the catalog
For example, the graduate certificate in Financial Risk Engineering is very popular. Courses in this certificate program emphasize a blend of mathematics and finance that will help graduates to see the financial landscape from a market, credit, and systemic risk perspective and to analyze and manage the risk efficiently.
Another popular choice is the graduate certificate in Algorithmic Trading Strategies. This graduate certificate is designed to provide aspiring financial engineers with the necessary understanding of the design and implementation of financial trading systems, with an emphasis on the role of software and automated decision support systems in trading strategies. The certificate also is suitable for technical professionals interested in applying their unique skills to the fast-changing realm of finance.
Algorithmic Trading Strategies
This concentration emphasizes the design and implementation of financial trading systems in dynamic markets, with special focus on how software and automated decision support systems play roles in trading strategies. To complete this concentration, students must take the following courses:
Algorithmic Trading Strategies Concentration Requirements
Students are required to take 4 of the courses from the list below:
| FE 545 | Design, Patterns and Derivatives Pricing | 3 |
| FE 570 | Market Microstructure and Trading Strategies | 3 |
| FE 620 | Pricing and Hedging | 3 |
| FE 670 | Algorithmic Trading Strategies | 3 |
Financial Risk Engineering
Technology’s impact on market fundamentals means managers must understand the financial system, its environment and the risk measures that help quantify risk in its multiple hierarchies. Courses in this concentration emphasize a blend of technology and business to help graduates see the financial landscape from a systemic perspective, and to analyze and manage risk efficiently. To complete this concentration, students must take the following courses:
Financial Risk Engineering Concentration Requirements
Students are required to take 4 of the courses from the list below:
| FE 535 | Introduction to Financial Risk Management | 3 |
| FE 610 | Stochastic Calculus for Financial Engineers | 3 |
| FE 635 | Financial Enterprise Risk Engineering | 3 |
| FE 655 | Systemic Risk and Financial Regulation | 3 |
Financial Analytics
The Financial Analytics concentration emphasizes statistical learning methods and database skills, preparing students to develop tools to manage enterprise-level challenges. Students apply data-driven solutions to complex financial problems in preparation for an industry in increasing need of such skills. To complete this concentration, students must take the following courses:
Financial Analytics Concentration Requirements
Students are required to take 4 of the courses from the list below:
| FE 582 | Foundations of Financial Data Science | 2 |
| FE 513 | Financial Lab: Practical Aspects of Database Design | 1 |
| FE 590 | Statistical Learning | 3 |
| FE 595 | Financial Technology | 3 |
| FE 550 | Data Visualization Application | 3 |
Financial Computing
This concentration goes beyond basic programming and computing skills to teach students to use quantitative models to manage large financial data sets. Students learn financial computing models, financial databases, financial engineering software and specialized programming languages. To complete this concentration, students must take the following courses:
Financial-Computing Concentration Requirements
Students are required to take 4 of the courses from the list below:
| FE 505 | Financial Lab: Technical Writing in Finance | 1 |
| FE 522 | C++ Programming in Finance | 3 |
| FE 511 | Introduction to Bloomberg & Thomson-Reuters | 1 |
| FE 800 | Project in Financial Engineering | 1-6 |
Financial Statistics
Proper statistical analysis, supported by new technology tools, helps managers assess markets and build products to create competitive advantages for the enterprise. This concentration gives students insight into technology-driven opportunities in finance through advanced data analytics. To complete this concentration, students must take the following courses:
Financial-Statistics Concentration Requirements
Students are required to take 4 of the courses from the list below:
| FE 541 | Applied Statistics with Applications in Finance | 3 |
| FE 542 | Time Series with Applications to Finance | 3 |
| FE 590 | Statistical Learning | 3 |
| FE 610 | Stochastic Calculus for Financial Engineers | 3 |