What is financial engineering all about?

<p>Do you need an undergraduate degree in some sort of businiess? I looked at the prerequisite requirement for Master's in Financial engineering at several schools and it seems like you only need some knowledge of Calculus, probability, statistics, linear algebra and such. Do many people do this? How's the job outlook?</p>

<p>You need an undergraduate degree with high quantitative content like:</p>

<p>Math*
Physics*
Engineering*
Finance
Actuary Science
Risk Management
Statistics</p>

<p>And you need a programming background probably in C#</p>

<p>There are a lot of threads about this, especially in the Business majors’ forum, but in short, you need strong business and quantitative skills. Quantitative skills are extremely important because you’ll be building complex mathematical models involving stocks, derivatives and other “exotic” financial instruments.</p>

<p>If you think you have a broad interest in multiple fields of business (accounting, management, marketing, etc.), and not just finance, you may want to consider the MBA degree so as not to limit your options.</p>

<p>Job outlook has definitely taken a major hit after the financial crisis. However, a good portion of graduates from top programs are still able to secure [solid</a> job placements](<a href=“http://mfe.haas.berkeley.edu/careers/placement.html]solid”>http://mfe.haas.berkeley.edu/careers/placement.html) through lots of networking. Sadly, in the business world, it’s all about networking, to the extent that it’s often more important than your actual abilities.</p>

<p>It’s an exciting field if you can handle the math. When Thom says “exotic” he not kidding. Even finance types like Warren Buffet find the math and logic mysterious. </p>

<p>What little I get I find fascinating. I like to look at the processes they develop and try to simplify it and see if similar processes can be applied to other places where risk is a factor. If this field existed when I went through undergrad I would have geared my training toward that. </p>

<p>Regardless of what you do, it pays to pick up a programming language. If you are self employed or go for a PhD it is useful. You can run your own experiments and set up your own algorithms for your own purposes.</p>

<p>The guys on this site seem to get upset with me when I push people to learn more than just basic finance. If you want to be the best then you need the best tools. Sometimes the programs that are out there aren’t enough. If that’s the case you need to develop your own programs. I’m not talking WII graphics. I’m talking financial analytics that apply to your purposes. </p>

<p>Just saying.</p>