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New York University Polytechnic School of Engineering    
 
    
 
  Dec 14, 2017
 
2013-2014 Undergraduate and Graduate Bulletin (with addenda) [ARCHIVED CATALOG]

Financial Engineering, Risk Finance Track, M.S.


The Master of Science Program

The Master of Science in Financial Engineering (FE) is a 33-credit program designed to provide the skills required to operate at the cutting-edge of financial engineering in today’s financial services industry. Separate tracks make it possible to pursue careers in financial markets and corporate finance, in financial technology, in computational finance or in actuarial science. The program is rigorous, demanding and selective.

Graduates of the Risk Finance Track will have the qualification and abilities to become responsible specialists for positions in finance, credit granting firms, banks and insurance companies, as well as obtain the knowledge needed to face the upcoming complex problems arising by the increased use and centrality of financial insurance products (contributing to the development of complex financial products and a convergence) of finance and insurance. The complementary actuarial profession is a discipline that uses tools from statistics, probability theory and finance to analyze and solve practical problems in insurance and financial risk management. Actuaries assemble and analyze data to estimate the probability and likely cost of an event such as death, sickness, injury, disability or loss of property. Courses in risk finance provide the background for the first four actuarial examinations supervised by the Society of Actuaries and the Casualty Actuarial Society and cover additional educational experience requirements. The department both supports and encourages students in their preparation for and the acquisition of such certificates as these are important elements in job-seeking in the insurance-quant sector.

NYU Polytechnic School of Engineering’s Master of Science in Financial Engineering brings together four key areas: finance and related business disciplines, quantitative analysis (mathematics and statistics), information technology (telecommunications and computer science) and management. In addition, it provides an opportunity to attend to the many areas of business and management where finance is an essential element.

The financial and practical component of the educational program has been further strengthened by developing a large and versatile body of adjunct faculty consisting of leading financial market practitioners from major Wall Street firms and international professors’ affiliates. These adjunct faculty members work closely with NYU Polytechnic School of Enginering’s full-time faculty emphasizing both applied and theoretical research in bringing to financial engineering students a greater sensitivity to the needs and the demands of financial markets and the management of financial services and institutions.

ADMISSIONS

The Master of Science in Financial Engineering at the School of Engineering is very highly selective. All applicants must present transcripts from all colleges and universities they have attended as well as GRE (Graduate Record Exam) test scores; there are no exceptions to this rule. Applicants who have undergraduate average above 3.0 or a master’s degree and also have a GRE quantitative score that is superior and a verbal score that shows competence in English are considered for admission.

For the GRE, the institution code is 2668; a department code is not necessary. Additionally, the applicant must have sufficient proficiency and aptitude in mathematics. This may be demonstrated by grades earned in relevant course work and/or standardized examinations. This criterion is not entirely objective and will be established by the Academic Director. Applicants who meet the above criteria are by no means guaranteed admission, which is also based on a competitive performance of applicants.

Two letters of recommendation are also required for admission. The student must demonstrate a proficiency in the English language as measured by verbal scores on the GRE or successfully complete a series of ESL courses in order to commence formal study. The Graduate Certificates associated with the Financial Engineering Program have the same application requirements and prerequisites as the Master of Science degree.

Applicants requesting admission for study only in a particular course or group of courses are given Special or Visiting Student Status, which permits registration, generally for a limited duration, in those courses indicated by the approval of admission. Registration is limited to 6 credits per semester. If additional courses are desired after the end of the specified period, a new admission request must be filed through the admissions office. Special Status students who later apply for and are accepted to the master’s or certificate program may transfer up to 9 credits taken while on Special Status. Special Status students are expected to complete the GRE exam before applying for admission to MS FE or any associated Graduate Certificate. The GPA earned as a Special Status student will be used as part of the admissions decision in place of the undergraduate GPA.

Individuals interested in applying for admissions to either the Master of Science in Financial Engineering or the Graduate Certificate Program please visit the Graduate Admissions. The site has a downloadable application and information on tuition and financial aid.

Requirements for the Master of Science


A Bachelor’s degree is required for admission to this program. It is expected that students will have superior mathematical talent. Before beginning graduate studies, conditionally approved students must demonstrate proficiency in basic statistics, probability and mathematics. The Department makes available refresher courses for this purpose and to serve the population of students who have been out of academia prior to matriculating into this program. Prerequisites: GRE exam scores, Calculus (MA-UY 1124  or equivalent) Probability and Statistics (MA-UY 2224  or equivalent), and Linear Algebra (MA-UY 2012  or equivalent). Computer programming skills are increasingly useful.

Master's in Financial Engineering: 33 Credits


All tracks include in their program:

  • 5 core courses, each 3 Credits
  • Track required courses totaling 7.5 Credits
  • 1 required applied lab, worth 1.5 Credits
  • 4 elective courses, each 1.5 Credits
  • 1 Capstone Experience of 3 Credits

All MS Financial Engineering students must also complete the Bloomberg Essentials Online Training Program to be qualified for graduation. The Department of Finance and Risk Engineering supports students’ efforts in this area by providing many Bloomberg terminals and laboratory assistants to answer student questions. This is a zero-credit requirement that is listed here as FRE-GY 5500 .

All tracks: Core courses = 15 Credits.


Incoming MS students of Financial Engineering have four track options. Each track has required courses totaling 7.5 credits.

  • Financial Markets and Corporate Finance
  • Computational Finance
  • Technology and Algorithmic Finance
  • Risk Finance (Credit Risk, Financial Management and Insurance)

Required Labs per Track: 1.5 Credits


Students from all tracks must choose one of the following labs for 1.5 credits:

Required Certification: 0 Credits


All students must complete the following certification:

Capstone Options: 3 Credits


Risk Finance Track


Prerequisites


Recommended Electives* (6 Credits)


 * Students may, of course, choose elective courses from the entire portfolio of FRE graduate courses and with their adviser’s permission may choose courses from other departments of NYU Polytechnic School of Engineering or other schools of NYU. Those courses listed here are suggestions.

Credit Allocation for Risk Finance track:


Core Courses: 15  
Track Required Courses: 7.5  
Laboratory Required: 1.5  
Elective Credits: 6  
Capstone: 3  
Total Credits: 33  

All these options require a review by faculty advisers and certification of satisfactory work.