Academic Program

Management of risk is a necessity in today’s highly leveraged, highly competitive, global economy. Using advanced quantitative methods and path-breaking concepts of strategic planning, financial engineering has emerged as a new and specialized discipline. Financial engineering focuses on designing, evaluating, and managing financial products and using real options to support strategic objectives. This intensive degree program prepares graduates for careers in a broad range of specialties including asset management, investment banking, corporate finance, and consulting.

Admission Requirements

An applicant to the program should have a strong quantitative undergraduate background, and preferably some experience in using mathematical software. Some background in business or economics is desirable. An undergraduate degree in mathematics, physical science, engineering, or economics is an advantage. Each student will acquire advanced quantitative and managerial tools in the course of the program.

An applicant must submit a completed application, application fee, transcripts of all undergraduate and graduate work completed, three letters of reference, résumé, personal statement, and GMAT or GRE scores to the Office of Admission and Records at Claremont Graduate University. Non-native speakers of English also must submit TOEFL test scores. The admissions committee reviews applicants for clear indications of analytical and leadership ability, particularly in quantitative work.

Quantitative Work. Applicants are expected to have completed Calculus I, Calculus II, Calculus III, (multivariate calculus) and linear algebra with a grade of B or better.

Degree Requirements

The program consists of 12 courses of 4 units each, for a total of 48 units. The 12 courses include:

• four required courses in mathematics.

Probability
Statistics or Financial Time Series
Stochastic Processes
Mathematical Finance

• four required courses in management.

Introduction to Risk Management                                                                                                                Financial Accounting
Corporate Finance
Asset Management Practicum
Derivatives 

• three approved courses in mathematics, management, or economics selected from the list of approved elective courses.

Additional Requirements and Policies

The program can be completed in three semesters of 16 units each, but many students choose to spread the degree over four semesters. The program can also be completed on a part-time basis and students may elect to switch between full-time and part-time. A student with sufficiently strong mathematical background may request a waiver of one or more required courses. Management courses may be waived on the same basis. A student may, with the agreement of a faculty sponsor, elect to do an internship for up to 4 units of credit, counted as a management elective. A student must maintain an average grade of B (3.0) or better in the 48 units to qualify for the degree. A student whose overall grade point average falls below a B and who does not make satisfactory progress toward completion of the degree may be dropped from the program upon faculty review at any time during the course of study. 

A student may be permitted to transfer up to 8 graduate-level semester units of credit toward the MSFE This requires a grade of B or better attained in a faculty-approved course from an accredited graduate institution within five years of the student’s enrollment at CGU. A student requesting a transfer of units must submit transcripts, syllabi, and documentation of coursework to the program coordinator. The request for transfer must be approved at the beginning of enrollment. Information on continuous registration, master’s program outlines, and other general requirements can be found in the “Degree Regulations ” section of this Bulletin.

Field Study in Financial Engineering

An integral component of the financial engineering degree is an internship opportunity that allows candidates to examine specific applications of derivative instruments and risk management in a business environment. Depending upon student and sponsor needs, internships can be structured on a full- or part-time basis. The internship is not a requirement, but is optional and may be taken for academic credit toward the management electives requirement.