General MSCF Program Questions
What is the difference between computational finance and financial engineering?
While the terms "quantitative finance," "computational finance," "mathematical finance" and "financial engineering" are often used interchangeably, there are subtle differences in their meanings. Financial engineering programs often emphasize finance and financial markets at the expense of more rigorous computing and quantitative skills. Some mathematical finance programs focus on theoretical math at the expense of real-world application. Few programs embed programming into their curricula and fewer still have been able to replicate Carnegie Mellon's well-balanced and carefully coordinated mix of math, probability, applied finance and computation. Not all financial engineering degrees deliver the same value. We often advise students evaluating programs to ask the following key questions:
- The skills needed for the quantitative finance industry are, by definition, interdisciplinary. Is the program isolated in one department or top-heavy in math or finance?
- Will you benefit from a customized curriculum that is designed specifically for the jobs and careers of interest to you?
- Does the program offer knowledgeable career counselors who will work closely with you and with interested recruiters in helping you obtain your career goals?
- Will you enjoy a program with many years of experience in developing its curriculum and overall student experience?
- Will you be participating in a program with a large alumni network and which is committed to strong alumni ties?
What makes the MSCF Program unique?
- We are an interdisciplinary degree that offers you the benefit of a customized curriculum. Students not only learn sophisticated mathematical modeling tools, complex programming methodologies and data science techniques, but learn how to apply these skills within the context of financial and economic theory.
- We have deep industry connections and full-time career counselors who work exclusively and individually with students on the development and execution of a recruitment plan.
- In addition to formal coursework in business communications, we also offer the MSCF Communication Development Program that provides individual communications coaching to polish and enhance both verbal and oral communications.
- With over 1,600 alumni in the industry, we have a strong and committed alumni network that you can leverage throughout your quantitative finance career.
What is the difference between the NYC and Pittsburgh locations?
Students in the New York City location like the close proximity to global financial institutions and the many MSCF alumni employed by these firms for networking opportunities. Pittsburgh students enjoy the traditional campus environment and student life, greater access to non-MSCF courses and a relatively affordable cost of living. Regardless of the location, students receive the same live instruction from world-class faculty, professional support from career services staff and the opportunity to meet with recruiters and MSCF alumni.
When does the MSCF program begin?
The MSCF program begins in the fall of each year. Since the courses are sequential, fall is the only time a student can enter the program. However, incoming students are required to be present for the MSCF Prep Program, our mandatory orientation, which begins in August. Admitted students will be advised of the dates for orientation.
Does the MSCF Program offer a part-time or online option?
Unfortunately, at this time, we only offer a full-time, on-campus program. Courses are offered throughout the day at both our Pittsburgh and New York locations. Due to the rigorous nature of the program, it is impractical and not recommended that students work while in the program, with the exception of the summer internship.
Are transfer credits accepted?
Do MSCF graduates go on to earn PhDs?
Yes, a handful of our graduates have gone on to earn PhDs. However, the MSCF program is designed to prepare graduates for a job in the industry immediately upon graduation. If your interest is in academia, you should apply directly to a PhD program.
What are some useful reading materials to learn more about quantitative finance?
- "Capital Ideas" – Peter L. Bernstein
- “Capital Ideas Evolving” – Peter L. Bernstein
- "The Complete Guide to Capital Markets for Quantitative Professionals" – A. Kuznetsov
- "Options, Futures and Other Derivatives" – J. Hull
Why are there not more elective courses in the curriculum?
Can I take other CMU courses not offered by MSCF?
Yes, certain CMU courses can be taken as either an Approved Substitute or as an Overload.
Approved Substitutes are non-MSCF courses at Carnegie Mellon that you take in place of an MSCF elective course(s). Approved substitutes are only permitted in the third semester and must be taken for a letter grade. See the CMU Electives drop down on the Academics page for the current list of approved substitutes. Students can also request that other CMU courses be used as Approved substitutes. These requests must be approved by the designated Steering Committee member to count as approved substitutes. Approved substitutes will be included in the MSCF QPA required for graduation.
An Overload is a course taken in addition to the MSCF courses. Overloads are only permitted in the second and third semester of the program and permission must be secured from your Academic Advisor. Students are required to have an MSCF QPA of 3.75 to take an overload course. Overloads will not be counted towards the MSCF QPA required for graduation. Overloads will show on your CMU transcript and will be included in the QPA on your transcript.
For both Approved Substitutes and Overloads, course offerings vary by location and enrollment to non-MSCF courses is subject to university policies.
Can I exempt the required MSCF Summer Internship course (46999)?
What happens if I cannot obtain the required summer internship?
What programming languages are taught and used in the MSCF program?
What are you looking for in a candidate for the MSCF program?
We are looking for candidates who are able to demonstrate their potential for success both academically as well as professionally. The only commonality amongst all candidates is a proof of success academically in a depth of mathematics coursework as well as a demonstrated understanding of the field of quantitative finance and clear goals therein. Beyond that, we seek candidates who can express their ideas clearly both verbally and in writing, have the motivation to be successful in the rigors of the MSCF program and beyond and are able to work well in diverse teams.
The admissions process is very holistic in nature. We take a close look at all components of the application to make our decisions and any one area of weakness may be balanced by another area of strength. While the class profile can serve as a guideline for candidate’s to assess his/her background, the only way for us to fully assess one’s candidacy is to submit a complete application!
How much math and statistics will I need?
The MSCF Program is highly quantitative. While the background of our students varies, most have taken engineering-level math courses beyond calculus including Linear Algebra. A calculus-based probability course is also required. The MSCF Program includes a detailed treatment of the mathematical models of quantitative finance, and this involves stochastic calculus and its applications. Undergraduate courses that cover both probability and statistics rather than just probability often devote insufficient time to the probability content needed to sufficiently prepare students for the level of probability encountered in MSCF. If you have not previously taken a calculus-based probability course, you should look for a course covering advanced topics in probability including the law of large numbers, the central limit theorem, moment-generating functions, multivariate probability distributions, conditional distributions, and independence, covariance and correlation of random variable. Students lacking one or more advanced mathematics courses may still be considered provided they are able to take steps to acquire the necessary skills before entering the program and satisfy the admissions committee requirements.
How much programming experience will I need?
As a “computational finance” program, it is no surprise that the MSCF program places a large emphasis on programming proficiency. Applicants should have completed, at a minimum, one full-semester course in an object-oriented programming language, either C++, Python, Java or C#. Additional programming coursework is highly recommended.
We will accept professional programming experience in lieu of programming coursework for candidates with one or more years of professional experience that heavily involves programming in an object-oriented language.
While Python is the language most readily used in industry, if you have not taken any programming coursework, it is recommended that you take a C++ or Java course, as these languages are more complex and will better prepare you to learn Python and other programming languages.
How much work experience do I need?
Relevant professional experience is preferred but is not required. The entering class profile highlights work experience and background. Interest in finance, quantitative aptitude, educational background, character, language skills and work experience are all important determinants in the admissions decision.
Are there any preparatory courses?
Each year, starting in August, the MSCF program offers our four-week MSCF Prep Program. As part of the MSCF Prep Program, matriculating students will have the opportunity to take courses that focus on probability, math and programming skills which are specifically designed to help prepare students for the rigors of the MSCF program.
The MSCF Prep courses are only open to students who are admitted to the MSCF program that are matriculating this August. There is no additional charge for the course for entering MSCF students; however, students will be responsible for purchasing any reference texts or materials.
How can I enhance my profile?
- Study. In particular, strong performance in your quantitative and computational coursework shows you have the potential for success academically in the MSCF program.
- Fill in any gaps in your academic background by taking any pre-requisite courses you are missing in advance of applying. Be sure to take any courses for a grade at an accredited college or university – open courseware coursework is not recommended!
- Find an internship in the financial services industry and/or research related to the key MFE areas to enhance your career marketability
- Follow the markets and read the news (Wall Street Journal, Bloomberg, Seeking Alpha, etc.). Understand current events and form your own market view.
- Open a paper trading account and start developing and practicing your own trading strategies
- Start building your professional network. Take advantage of opportunities to build your network and understand roles in the quant finance space
- Practice your written and verbal communication skills. Most successful graduates are not only able to crunch the numbers, but can also sell their ideas to clients!
Do all candidates have to submit test scores?
A GRE or GMAT score is required for all candidates. You are required to submit an official copy of either your GRE scores directly from ETS or GMAT scores directly from Pearson VUE. You must have taken the test within five years of submitting your application. While the MSCF program accepts either the GRE or the GMAT, if you have yet to take either, we recommend that candidates take the GRE. When you take the exam, select the appropriate code as follows:
- GMAT Program Code - MSCF Program (Carnegie Mellon Tepper School of Business): 69H-XH-17
- GRE Program Code - Carnegie Mellon University Masters in Computational Finance: 7383
If you hold a Ph.D. from a U.S. institution in a related discipline at the time of application AND are able to submit a photocopy of the GMAT/GRE that was part of your original Ph.D. application, you may not be required to submit a new, valid copy of the GMAT/GRE test results. Additionally, we will extend this for candidates who are expected to complete their Ph.D. studies at a U.S. institution by July 31, 2021, for students applying to the program for the fall 2021 entering class. Such requests will be considered on a case-by-case basis by the MSCF Admissions Committee. If you meet BOTH of these criteria, you can request that your application to be reviewed with previous, non-valid test score. You must submit the following THREE items: 1). submit a completed application; 2). include a statement requesting consideration of your previous test score in the optional essay section; and 3). submit a scanned copy of your previous test score report with your optional essay. We will notify you only if you have not been granted the waiver.
Do I need to submit the TOEFL or IELTS?
The TOEFL and IELTS scores apply to any prospective student who does not have English as their primary language. Candidates are required to demonstrate a level of competence in English to meet the admissions requirements of the university. You are required to take a TOEFL or IELTS exam unless:
- You attended an undergraduate institution, for two or more years where you earned a bachelor degree (or will earn a bachelor degree by July 31, 2021 for the fall 2021 entering class) and the sole language of instruction was English. Although not required, we do recommend that you take the English Language Proficiency exam.
- You earned a graduate degree that was taught in English. Although not required, we do recommend that you take the English Language Proficiency exam.
Candidates who are required to take the TOEFL or IELTS must have received their unofficial scores prior to submitting their application. Be sure to request the official scores be sent to Carnegie Mellon University by the testing agency. Scores are valid for two years and must be valid at the time you submit your application. When you take the exam, select the appropriate code as follows:
- TOEFL Program Code: B522 (Carnegie Mellon University – MSCF)
- IELTS Program Code: Select Carnegie Mellon University and Computational Finance
When are the application deadlines?
You can find our application and decision notification dates included on our apply page.
Please carefully check your application before submitting it online to ensure you have included all the correct materials that best represent your background and qualifications for the MSCF program. Once you submit your application, we will begin processing your application and matching test scores and other materials to your online application. You will receive an email that your application is complete or incomplete via email within 2-4 weeks after you have submitted your application. You can then log into your application to view your status and submit any missing materials.
Given the volume of applications received, we kindly ask that you not contact the MSCF admissions office regarding the status of your application unless you have not received any notification after 4 weeks post submission.
Do I need to schedule an admissions interview?
You may be contacted by email to arrange an on-campus or virtual face-to-face interview via Skype before a final decision is made on your candidacy. Interviews are granted at the discretion of the MSCF admissions committee after an initial review of your application. Therefore, requests for interviews will not be granted. Interviews can take place at any time in the application process.
What is the format for the admissions interview?
Interviews play a vital role in the admissions review process. Interviews are generally more behavioral than technical in nature and allow us to gauge your understanding of the field of quantitative finance, your fit with the MSCF program and your future career goals. Further, interviews give us an opportunity to better assess your communication and presentation skills, important qualities for one to succeed in the financial services industry. Interviews are typically between 15-30 minutes in duration and are conducted by a member of the MSCF admissions committee.
When will I receive my admission decision?
All applications are reviewed in batches in accordance with our application rounds and typically all decisions for each round are released on the posted decision release date. Generally, decisions are not released in advance of our posted deadlines, we recommend that you consider planning your applications accordingly.
If admitted, am I able to defer enrollment?
We do not defer enrollments but we will keep your admissions materials on file for one year. Should you choose to seek admission the following year, your candidacy will be evaluated on the basis of the applicant pool at that time. We do offer an application fee waiver for candidates reapplying within one year.
How have your students seeking full-time positions and summer internships fared in the midst of the COVID-19 turmoil?
As of April 15th, 2021
Offers Received – 99%
Offers Accepted – 99%
Offers Received – 96%
Offers Accepted – 91%
For Summer 2021 internships, as of April 15th, 78 (96%) of 81 students have received offers; 74 (91%) have accepted offers. Last year, for Summer 2020 internships, all of our 91 students seeking internships were successful including 4 students whose original internship were canceled as a result of the pandemic but were able to obtain other internships. In addition, the MSCF program worked this summer with several professors at Carnegie Mellon to develop meaningful research opportunities for 10 of these 91 students. 7 of these summer-long positions are as research assistants for Carnegie Mellon professors; 3 are engaged in faculty-supervised student research positions.
As an F-1 visa holder, what must I do to qualify for Curricular Practical Training (CPT) in the MSCF program?
Are the employment outcomes obtained at the Pittsburgh location similar to the outcomes obtained at the New York location?
Yes, the employment outcomes at the two locations are very similar:
PERCENT OF STUDENTS RECEIVING FULL-TIME OFFERS SIX MONTHS AFTER GRADUATION
|Dec. '19 grads|
|New York City||100%|
|Dec. ’18 grads|
|New York City||100%|
|Dec. ’17 grads|
|New York City||96%|
What are the most popular career paths for MSCF graduates?
As of Mar. 17, 2021, Quant Research (38%) was the most popular career path for our December 2020 graduates, followed by Strats & Modeling (23%). Then, we had Sales & Trading (13%), Data Science (13%), Risk Management (6%), Portfolio Management (5%) and Other (2%).
Be sure to check out our yearly employment reports for complete career statistics.
Will a degree from MSCF make me a better candidate for quant jobs than an MS in Data Science?
The MSCF degree will better prepare you for a position as a data scientist in the finance industry, when compared with either a MS in Data Science which covers a broad range of applications or an MS in Business Analytics which focus is on improving a firm's performance using data-driven decision making. Neither of these programs has the laser focus of MSCF, applying machine learning and other data science tools to quantitative finance. Taught with mathematical rigor coupled with the necessary computational skills provided by our computer science courses, students emerge from our program exceptionally well prepared to adapt and assimilate new methods of data analysis that appear in this rapidly-expanding field.
A number of top MBA programs are now STEM-designated. Are these programs a better fit for a career in quantitative finance?
Do I have to know my desired career path before enrolling in MSCF?
This is a niche degree and it is important to the Admissions team that you know enough about the industry to be confident that a career in quantitative finance is what you want to do. However, many enter this program with only a few undergraduate summer internships behind them. Part of the value in being a part of the MSCF program is the opportunity to learn about the quantitative finance career paths through fellow students with industry experience, practitioners in the classroom, the MSCF Speaker Series, various alumni engagements and, of course, the summer internship.
Do PhDs dominate careers in quantitative research?
While certain roles in model validation and fixed income research commonly require a PhD, the opportunities for well-equipped masters students are many, including quantitative research. Indeed, the very reason this program began in 1994 was to bridge the gap that existed at the time between the PhD’s who possessed the needed quantitative skills but lacked the commercial understanding of its application and MBAs with strong communication skills and solid market knowledge but lacked the math, statistics and coding needed by the banks and hedge funds. Strong quant skills coupled with market knowledge and the ability to communicate effectively is what the MSCF degree offers the employer and it has been a winning combination.
Employment Outcome Questions
Do employment statistics reported by quant programs adhere to a common set of standards?
There are no common standards for reporting job placement and salary metrics among professional quant finance master’s programs and these numbers are usually not subject to audit. Students in the MSCF program are enrolled through the Tepper School of Business which adheres to a strict set of employment and salary reporting standards set forth by the MBA Career Services & Employer Alliance. The MSCF website provides three years of employment detail regarding industry, functional area, base salaries and signing bonuses. Importantly, we also provide the methods used to calculate and report these outcomes.
How is average salary calculated?
“Average Salary” figures can be misleading. While the MBA Career Services & Employer Alliance requires that “Base Salary” only be reported (signing bonuses can be reported separately) many programs include guaranteed (some even non-guaranteed!) bonuses, stock options, signing bonuses and relocation expenses as part of “average salary.” In some instances, employment data is shown for US-based positions only. Some programs will include short-term “internships” as full-time jobs. Some programs report salary data with no reference to what percentage of the total class this “average” figure represents. (It matters whether the reported average is of 20 students reporting out of a class of 60 or 58 students out of 60!) In short, you cannot accurately compare program outcomes without an understanding of how these figures are compiled!
How are placement rates calculated?
The placement rate percentage can be greatly influenced by the method employed. Perhaps the best way to address this is to describe the method required of MSCF by the MBA Career Services & Employer Alliance and to advise you, the prospective student, to compare this methodology with that used by other programs.
Numerator: The number of students having accepted an offer of full-time employment or a contract of at least ten consecutive weeks in an appropriate financial services position three months following the date the students were certified as having earned the degree for the academic year. This information must have been obtained from the student or another reliable source.
Denominator: The total number of students certified as having earned the degree for the academic year for which you have obtained information from the student or another reliable source that they have obtained employment or are still seeking employment, minus all graduating students not seeking employment* minus all graduating students for whom the program has “No Recent Information.”
No Recent Information: A calculation showing the number of students for which a program states it has “No Recent Information” and, as a result, have been removed from the denominator. The MBA Career Services & Employer Alliance has specific rules on what communication attempts must be performed and when before a student can be so removed.
*Company Sponsored, Already Employed, Continuing Education, Postponing a Job Search, Starting a New Business, Not Seeking for Other Reasons
Can a program’s graduation date affect job placement performance?
Yes, job placement percentages can be influenced by a program’s graduation month and financial industry hiring seasonality. For programs with a December graduation date, many job postings may occur beyond three months after graduation making the six-month statistic a better indicator of placement success.