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. 

The Master of Science in Financial Engineering (MSFE) can be completed in three semesters, although many students choose to spread the degree over four semesters.  Students may enroll on a full-time or part-time basis and are given the flexibility to switch between either.  All students are advised to plan their schedules carefully since most courses are only offered during the day.

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 as indicated in the Admission  section of the Bulletin.  Students whose first language is not English must submit TOEFL test scores. The admissions committee reviews applicants for clear indications of analytical and leadership ability, particularly in quantitative work.

Quantitative Background Criteria. 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

Coursework.  The program requires 48 units, or 12 four-unit courses.  Course expectations are distributed as follows. Addendum: Unit reduction approved for students entering the program Spring 2016 or after.  Please see the 2016-2017 Bulletin for details.

Mathematics.  Five courses in mathematics are required.

• Probability
• Statistics or Financial Time Series
• Stochastic Processes
• Mathematical Finance
• Quantitative Risk Management or Optimal Portfolio Theory

Students with a sufficiently strong mathematical background may request a waiver of one or more of the required courses.

Management.  Four courses in management are required.

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

Students with a sufficiently strong management background may request a waiver of one or more of the required courses.

Electives.  Three approved courses in Mathematics, Management, or Economics are selected from a list of approved courses.

Field Study (Optional).  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.

Satisfactory Academic Progress.  University policies on satisfactory academic progress apply.  Students must maintain an average grade point average (GPA) of 3.0 (B) or better in the 48 required units to qualify for the degree.  Students whose GPAs fall below 3.0 or who do not make satisfactory progress toward completion of the degree may be dismissed by the faculty.

University Policies.  University policies detailed in the Academic Policies  section of the Bulletin apply.

Program Opportunities

Dual Degree Programs.  Dual degree programs allow CGU students to work toward and earn two degrees at the same time.

For the MSFE degree, students must complete a minimum of 40 units.  These units are separate from the units required for the second degree.  Upon approval, the MSFE Program may accept up to 8 units from the second degree program to meet the 48 units required for the MSFE degree.

Students interested in a dual degree with MSFE should meet with the Financial Engineering program coordinator.  Dual degree program models are available for students in Economics, the Executive Master of Business Administration (EMBA), and the Master of Business Administration (MBA) programs.

For complete information regarding dual degrees, refer to the Enrollment in Multiple Programs  section of the Bulletin.

Accelerated Degree Program.  Claremont Graduate University offers qualified undergraduate students of the Claremont Colleges an opportunity to begin the MSFE degree while completing their undergraduate study. The applicant applies to the MSFE Program during the junior year and, with the guidance of both the program coordinator and the undergraduate advisor, enrolls in up to 16 units of coursework that may be counted toward the graduate degree.  Following baccalaureate graduation, the accelerated degree student is able to complete the MSFE with one additional year of study.

Interested undergraduate students should consult with their undergraduate advisors and contact Admissions  at CGU.