Financial Economics Institute
What is Financial Economics?
Financial economics is a discipline concerned with determining value and making decisions. Major topics include pricing financial assets, financing corporations, portfolio management, evaluating financial risks, banks and financial intermediation, corporate governance, and financial market regulation. Knowledge of modern finance is crucial for those looking for a greater understanding of topics in economics and public policy, such as exchange rate determination, international capital flows, monetary and fiscal policy, and financial reform in developing economies, regulation, and antitrust policy.
Consistent with CMC's liberal arts orientation, the sequence is designed so that students can major in fields other than economics, while at the same time gain the necessary background to facilitate placement in the financial sector of top graduate programs in economics and related fields.
The financial economics sequence will certify that students have a solid understanding of principles of economics, statistics, mathematics, accounting and the application of the methods underlying these fields to finance topics. Completion of the sequence is noted on the student's transcript. The program requires the following:
- Completion of prerequisites in economics, econometrics, mathematics, and accounting
- Completion of the financial economics core courses
- Completion of a breadth requirement consisting of at least three electives from a selected list that includes courses in economics, mathematics, and accounting
- Completion of a major research project, including an oral defense, in the area of financial economics-this project may be the senior thesis
- A minimum of a 9.0 average GPA in all core financial economics courses and the thesis
In addition, many areas of modern finance are highly quantitative (e.g., financial engineering) and for students interested in pursuing careers in these areas, the following set of courses is highly recommended:
- Calculus (MATH 31, 32): two semesters of calculus are required for sequence; a third semester is recommended
- Calculus-based probability and statistics (MATH 151, 152)
- Numerical Analysis
- Partial Differential Equations (MATH 182)
- Introduction to Computer Science (CSCI 51)
Please see Professor Joshua Rosett, Director of the Financial Economics Institute, for questions or more detailed information about the recommended courses. For additional questions about quantitative courses and careers in Financial Engineering see Professor Mike O'Neill, Department of Mathematics.