Applied Mathematics vs Computational Finance

In summary, the speaker has received admissions decisions from graduate programs in Applied Mathematics and Computational Finance and is struggling to decide between the two. They have a background in Economics and are considering pursuing a Ph.D. if they choose the Applied Mathematics program. They are concerned about their future marketability if they do not take finance courses. The speaker is advised to pursue the program in Applied Mathematics as it provides more diverse career options.
  • #1
flooey.D
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I have received some admissions decisions from the graduate programs that I have applied to, and I am stuck with a tough decision to make. I am hoping to hear from those who may have found themselves in a similar situation or someone who may have relevant industry experience who can shed some light on which academic program may be the wiser choice.

My background is a BS in Economics from a large research university. I was shy of a double major with mathematics because I didn't take the physics courses required of the math major.

I have been accepted into a MS in Applied Mathematics from a top ranked department and I have also been accepted into a MS in Computational Finance from a top ranked (math) department.

Basically, I feel like my decision is coming down to whether I want to be a scientist or do I want to make tons of money?

With the A.Math degree, I would probably choose to go on to a Ph.D. in A.Math. I have also found quite a diverse set of internship opportunities and career paths such as working at one of the National Laboratories or the Department of Defense.

With the Finance program, I feel like my life would be stuck in finance, but with opportunities to make substantial amounts of money. The finance programs offers courses involving Monte Carlo Simulation and also courses in financial computing techniques with R, C++, VBA, and Excel; which from what I have read are pretty important topics for computational finance professionals to know.

If I choose to accept the A.Math program and study topics such as PDE's, Fluid Dynamics, Computing, and Optimization, and I end up deciding that scientific research just isn't my thing, how marketable, in the computational finance industry, would my A.Math degree be if I didn't take those finance courses that the Computational Finance program offers?
 
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  • #2
I am by no means am an expert on this area, but one thing I know is that computational finance is a research area within applied mathematics so I would think that a MS in applied math should open doors for you in that area, in addition to the internship you had highlighted. I might also add that most of the people I know who are working as "quants" in the financial sector have graduate degrees in math, applied math, statistics, physics or operations research, not specifically in computational finance.

If you want my opinion, I would suggest you pursue the graduate program in applied math, because the program provides you with more varied options in terms of careers. The graduate program in computational finance sounds a little too limiting to me in terms of career choices.
 

FAQ: Applied Mathematics vs Computational Finance

1. What is the difference between applied mathematics and computational finance?

Applied mathematics is a branch of mathematics that uses mathematical models and techniques to solve real-world problems in various fields, such as physics, engineering, and economics. Computational finance, on the other hand, is a field that applies mathematical and statistical methods to financial data in order to make informed decisions and predictions.

2. Which field has more job opportunities?

Both applied mathematics and computational finance have a high demand for professionals in various industries. However, computational finance may have more job opportunities in the finance and banking sectors, while applied mathematics can lead to careers in a wider range of fields.

3. Can you give examples of applications of applied mathematics and computational finance?

Applied mathematics can be applied in fields such as biology, chemistry, and economics to model and analyze real-world phenomena. Computational finance is used in areas such as risk management, portfolio optimization, and option pricing in the financial industry.

4. What are the required skills for a career in applied mathematics and computational finance?

A strong foundation in mathematics, statistics, and programming is essential for both applied mathematics and computational finance. Additionally, knowledge of specific software and tools used in these fields, such as MATLAB and R, may be required.

5. Can one pursue a career in both applied mathematics and computational finance?

Yes, it is possible to have a career that combines both applied mathematics and computational finance. Many job roles, such as financial analysts and quantitative analysts, require a combination of skills from both fields.

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