Financial Engineering

As the role of the so-called quant has grown in importance within Wall Street firms and the broader financial services industry, a new academic specialty has developed in its wake. Degrees in financial engineering, mathematical finance, financial mathematics, quantitative finance or computational finance, as this new discipline is variously known, are being awarded by an increasing number of universities.

For the prospective quant, this presents an alternative to obtaining an MBA in addition to a degree in engineering, mathematics, physics or other highly quantitative fields.

The 2011 QuantNet Ranking

The Quant Network is based in New York City and focuses on financial engineering education and career resources for so-called quants. It boasts 13,000 members. QuantNet rated a preselected group of 22 North American master's degree programs in financial engineering (MFE) in July and August 2011. Factors used to rank the programs were:

• Frequency with which employers interviewed or hired graduates
• Starting salaries
• Employment rate at graduation
• Employment rate three months after graduation
• Student to administrator ratio
• Average GRE quantitative scores of students
• Average undergraduate GPA of students
• The percentage of applicants accepted

The latter three measures indicate the selectivity of the program.

The more selective, the higher the program ranks.

Caveats with the QuantNet Ranking

The ranking started out with a preselected list of 22 master's in financial engineering programs. Data from the schools were not independently audited. Surveys of employers went to a select list, of which only 39% responded.

The survey favors programs with fewer students per administrator, though the supposed benefit gained by the student from this cost-increasing factor is not described. Finally, as with any degree program, attendance at any institution is no guarantee that the degree holder will obtain a suitable job in the field.

Key to the Rankings

Following the institution's name is its location, the name of the degree awarded, the tuition cost, whether full-time (FT) or part-time (PT) study is offered, and the length of the program in years.

1. Carnegie Mellon University
   Pittsburgh, PA
   Computational Finance
   $73,800
   FT/PT
   1.5 years
2. Princeton University
   Princeton, NJ
   Master in Finance
   $77,240
   FT
   2 years
3. Columbia University
   New York, NY
   Financial Engineering
   $52,992
   FT
   1 year
4. New York University
   New York, NY
   Mathematics in Finance
   $49,752
   FT/PT
   1.5 years
5. Baruch College, City University of New York
   New York, NY
   Financial Engineering
   $21,315 (in-state) $32,040 (out-of-state)
   FT/PT
   1.5 years
6. Stanford University
   Palo Alto, CA
   Financial Mathematics
   $43,400
   FT
   1 year
7. University of California, Berkeley
   Berkeley, CA
   Financial Engineering
   $54,950
   FT
   1 year
8. Columbia University
   New York, NY
   Mathematics of Finance
   $38,614
   FT/PT
   1 year
9. Cornell University
   Ithaca, NY
   MEng, FE concentration
   $61,987
   FT
   1.5 years

1. Massachusetts Institute of Technology
   Cambridge, MA
   Master of Finance
   $73,800
   FT
   1 year
2. University of California, Los Angeles
   Los Angeles, CA
   Financial Engineering
   $51,500
   FT
   1 year
3. Rutgers University
   New Brunswick, NJ
   Mathematical Finance
   $29,052 (in-state) $49,648 (out-of-state)
   FT/PT
   1.5 years
4. University of Chicago
   Chicago, IL
   Financial Mathematics
   $44,892
   FT/PT
   1 year
5. Georgia Institute of Technology
   Atlanta, GA
   Quantitative and Computational Finance
   $15,561 (in-state) $50,313 (out-of-state)
   FT/PT
   1.5 years
6. University of Toronto
   Toronto, Canada
   Mathematical Finance
   C$38,000
   FT
   1 year
7. University of Michigan
   Ann Arbor, MI
   Financial Engineering
   $32,769 (in-state) $61,002 (out-of-state)
   FT
   1.5 years
8. Boston University
   Boston, MA
   Mathematical Finance
   $58,971
   FT/PT
   1.5 years
9. NYU-Poly
   Brooklyn, NY
   Financial Engineering
   $43,446
   FT/PT
   1.5 years
10. North Carolina State University
    Raleigh, NC
    Financial Mathematics
    $15,668 (in-state) $39,764 (out-of-state)
    FT/PT
    2 years

1. Claremont Graduate University
   Claremont, CA
   Financial Engineering
   $75,888
   FT/PT
   1.5 years
2. Illinois Institute of Technology
   Chicago, IL
   Mathematical Finance
   $49,104
   FT/PT
   2 years
3. Kent State University
   Kent, OH
   Financial Engineering
   $21,552 (in-state) $32,070 (out-of-state)
   FT
   1 year

Other Related Categories

Also consider these other aspects of financial careers:

• Financial Career and Job Profiles
• Leading Employers in Finance
• Education, Training, and Certifications for Financial Careers
• How to Manage Your Career
• Pay for Financial Jobs