Master of Financial Economics - Comparison With Other Qualifications

Comparison With Other Qualifications

There is some overlap with programs in financial engineering, computational finance and mathematical finance - see Master of Quantitative Finance (MQF). These degrees aim to train practitioners and "quants" - i.e. specialists in derivatives, fixed income and risk analysis - as opposed to economists, and their curricula are therefore weighted toward stochastic calculus, numerical methods, simulation techniques and programming, and are quantitative (well) beyond the level of the Financial Economics degree. At the same time, their coverage of financial theory, and of econometrics, while also significant, is (often) secondary Entrance requirements are similarly more mathematical. As mentioned, some Financial Economics degrees are substantially quantitative and differ very little from the MQF.

The overlap with general finance degrees such as the Master of Science in Finance (M.S.F.), or with an M.B.A. in finance, is further limited, particularly where the Financial Economics program is theory oriented. These degrees are focused on financial management, corporate finance and investment management, and are practice oriented with limited exposure to the underlying economic theory. Note though, that since these courses train graduates in the use of the models developed in Financial Economics, the theory is (sometimes) covered in the context of (a high level) understanding of model assumptions. Similar comments apply to professional certifications such as the Chartered Financial Analyst (CFA) designation. Note also, that the Master of Finance (M.Fin.) and M.Sc. Finance degrees, as opposed to the M.S.F., have a significant theory component (as well as quantitative component), and are largely identical to the Master's in Financial Economics.