Financial Engineering
Financial Engineering is a multidisciplinary field that emphasizes complex modeling and analysis of new financial economic instruments to manage risk, create strategic business opportunities, and access new markets. Especially in today’s highly leveraged domestic markets and fluctuating global business environment, successful management of market, credit, and production risk is essential yet increasingly difficult. This minor equips students with the basic analytical tools to help a business assess and manage financial risks, and can be used to complement a range of majors.
The objective of the program is to provide students with the necessary tools to help manage a business’s financial risks. In keeping with this objective, financial engineering majors undertake rigorous training in financial economics, engineering mathematics, and actuarial methods:
- Mathematics similar to engineering but expanded to include more statistics and probability theory
- Financial economics with a solid background in classical economic theory and markets (capital, commodity, and derivative)
- Software engineering and modeling
The financial engineering minor is a joint program of the Department of Mechanical and Industrial Engineering and the Department of Agricultural Economics and Economics.
Undergraduate Programs
The Bachelor of Science in Financial Engineering (FE) is a multidisciplinary major that emphasizes data analytics and the creation of new financial economic instruments as well as the combining of existing instruments to manage risk, create strategic business opportunities, lower costs, and access new markets. Risk management is essential in today’s highly leveraged domestic markets as well as the global business environment. Successful market, credit, and production risk management requires complex financial economic modeling and analysis.
The objective of the program is to provide students with the necessary tools to help manage a business’s financial risks. In keeping with this objective, financial engineering majors undertake rigorous training in financial economics, engineering mathematics, and actuarial methods:
- Mathematics similar to engineering but expanded to include more statistics and probability theory
- Financial economics with a solid background in classical economic theory and markets (capital, commodity, and derivative)
- Software engineering and modeling
Financial engineers are commonly employed in banking, corporate finance, securities, insurance, manufacturing, agricultural businesses, and other industries that require sophisticated analysis skills. To remain competitive, regional industries as well as national and international firms will employ financial engineers because of the increased complexity and sophistication of business risk management.
Due to their rigorous training, the demand for financial engineering graduates is high with a forecasted growth rate of 9% annually over the next seven years, according to the Occupational Outlook Handbook.
The financial engineering major is a joint program of the Department of Mechanical and Industrial Engineering and the Department of Agricultural Economics and Economics.
| Freshman Year | Credits | |
|---|---|---|
| Fall | Spring | |
| M 171Q - Calculus I | 4 | |
| CSCI 127 - Joy and Beauty of Data | 4 | |
| Choose one of the following: | 3 | |
CLS 101US - Knowledge and Community | ||
COMX 111US - Introduction to Public Speaking | ||
| WRIT 101W - College Writing I** | 3 | |
| EFIN 101 - Introduction to Financial Engineering | 1 | |
| ECNS 251IS - Honors Economics* | 4 | |
| M 172 - Calculus II | 4 | |
| PHSX 220 - Physics I with Calculus | 4 | |
| General Electives | 2 | |
| Year Total: | 14 | 15 |
| Sophomore Year | Credits | |
| Fall | Spring | |
| ECNS 313 - Money and Banking | 3 | |
| M 273 - Multivariable Calculus | 4 | |
| Choose one of the following: | 3 | |
ECNS 345 - Econ Org, Finance & Credit | ||
EGEN 325 - Engineering Economic Analysis | ||
| University Core Elective | 3 | |
| General Electives | 3 | |
| ECNS 301 - Intermediate Micro with Calc | 3 | |
| M 221 - Introduction to Linear Algebra | 3 | |
| University Core Electives | 6 | |
| General Electives | 3 | |
| Year Total: | 16 | 15 |
| Junior Year | Credits | |
| Fall | Spring | |
| EIND 354 - Engineering Probability and Statistics I | 3 | |
| EIND 364 - Principles of Operations Research I | 3 | |
| EIND 300 - Engineering Management & Ethics | 3 | |
| Professional Elective | 3 | |
| General Electives | 3 | |
| EFIN 301 - Engineering & Economic Financial Management I | 3 | |
| Choose one of the following: | 3 | |
ECNS 403R - Intro to Econometrics | ||
EIND 457 - Regres & Multivar Analysis | ||
| EIND 464 - Prin of Operations Research II | 3 | |
| EIND 373 - Production Inventory Cost Analysis | 3 | |
| Technical Elective | 3 | |
| Year Total: | 15 | 15 |
| Senior Year | Credits | |
| Fall | Spring | |
| EFIN 401 - Engineering & Economic Financial Management II | 3 | |
| ECNS 461 - Financial Econometrics | 3 | |
| EIND 468 - Managerial Forecasting & Decision Analysis | 3 | |
| ECNS 460 - Advanced Data Analytics in Economics | 3 | |
| Technical Elective | 3 | |
| EFIN 499R - Financial Engineering Design Capstone | 3 | |
| Professional Electives | 6 | |
| Technical Elective | 3 | |
| University Core Elective | 3 | |
| Year Total: | 15 | 15 |
| Total Program Credits: | 120 | |
- *
May substitute ECNS 202 Principles of Macroeconomics and ECNS 204IS Microeconomics
- **
Students exempt from the MSU writing requirement must still take a college-level writing course. Pre-approved substitutions are WRIT 201, WRIT 221, HONR 201US, HONR 202IH if not used to satisfy another requirement.
Professional Electives
| AGBE 321 | Economics of Agricultural Marketing | 3 |
| AGBE 421 | Advanced Agricultural Marketing | 3 |
| AGBE 445 | Agribusiness Management | 3 |
| BFIN 420R | Investments | 3 |
| BFIN 435 | Corporate Finance | 3 |
| BFIN 452 | International Finance | 3 |
| BFIN 456 | Entrepreneurial Finance | 3 |
| BFIN 458 | Commercial Bank Management | 3 |
| BFIN 460 | Derivative Securities and Risk Management | 3 |
| BFIN 491 | Special Topics | 3 |
| BGEN 361 | Principles of Business Law | 3 |
| BMGT 405 | Supply Chain Analytics | 3 |
| ECNS 303 | Intermediate Macro with Calc | 3 |
| ECNS 310 | Health Economics | 3 |
| ECNS 312 | Labor Economics | 3 |
| ECNS 314 | International Economics | 3 |
| ECNS 316 | Economics of Crime and Risky Behaviors | 3 |
| ECNS 317 | Economic Development | 3 |
| ECNS 320 | Public Finance | 3 |
| ECNS 332 | Econ of Natural Resources | 3 |
| ECNS 403R | Intro to Econometrics | 3 |
| ECNS 432R | Economic Policy Evaluation | 3 |
| ECNS 451 | Behavioral & Experimental Economics | 3 |
| ECNS 490R | Undergraduate Research | 1-3 |
| ECNS 492 | Independent Study | 1-3 |
| EFIN 498 | Internship | 1-3 |
| EGEN 310R | Multidisciplinary Engineering Design | 3 |
| EGEN 492 | Independent Study | 1-3 |
| EIND 425 | Technology Entrepreneurship | 3 |
| EIND 434 | Project Management for Engineers | 3 |
| Note: May substitute EIND 373 and ECNS 345 for BFIN 322 prerequisite, and substitute ECNS 313 for BFIN 357 prerequisite. May not double count ECNS 403R as PE and to satisfy EIND 457 substitution. | ||
Technical Electives
| CSCI 347 | Data Mining | 3 |
| CSCI 440 | Database Systems | 3 |
| CSCI 446 | Artificial Intelligence | 3 |
| CSCI 447 | Machine Learning | 3 |
| ECNS 309 | Managerial Economics | 3 |
| ECNS 401 | Microeconomic Theory | 3 |
| ECNS 502 | Macroeconomic Theory | 3 |
| ECNS 561 | Econometrics I | 3 |
| ECNS 562 | Econometrics II | 3 |
| EIND 422 | Introduction to Simulation | 3 |
| EIND 455 | Design of Experiments for Engineers | 3 |
| EIND 458 | Production & Engineering Mgmt | 3 |
| EIND 477 | Applied Statistical Quality Control | 3 |
| ESOF 322 | Software Engineering | 3 |
| ESOF 422 | Advanced Software Engineering: Cybersecurity Practices | 3 |
| ESOF 522 | Empirical Software Engr | 3 |
| M 274 | Introduction to Differential Equation | 4 |
| M 441 | Numerical Linear Algebra & Optimization | 3 |
| STAT 408 | Statistical Computing and Graphical Analysis | 3 |
| STAT 421 | Probability Theory | 3 |
A minimum of 120 credits is required for graduation; 42 of these credits must be in courses numbered 300 or above.
| Financial Engineering students seeking a minor in Economics must complete 3 upper division directed elective courses beyond the requirements for their major.
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