Friday, July 1, 2011

Which maths topics are used in finance especially for a msc or mphil programme


Which maths topics are used in finance especially for a msc or mphil programme?
I would like to have a list of the fundamental math topics that ought to have been covered before pursuing a master of finance programme? Thanks
Higher Education (University +) - 1 Answers

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Hmm. If you're talking about straight finance (discounted cash flows, etc.), then pretty basic algebra is all you need. If you're comfortable with exponents, then that's about it (1+r)^n. If you're talking about general Economics, then that is a different story altogether. I took a graduate Macroeconomics class once that use several concepts from Calculus III (Lagrange multipliers, etc.). If your masters degree is geared toward the real-world application of finance such as an MBA degree, then you'll be just fine with very basic algebra and you should spend your time getting comfortable with financial modeling. If you're looking into a more academic course of study that would involve broader economic concepts, I would hit as much calculus as you can. Seriously. Graduate level economics is no joke when it comes to math. Good luck!

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