Code: SCI3086

Extent: 20-25 cr

Language: English

Organizing department: Industrial Engineering and Management

Teachers in charge: Mikko Jääskeläinen, Ruth Kaila (coordinating teacher), Ahti Salo

Administrative contact: Tarja Timonen

Target group: All master's level students with sufficient prerequisite knowledge

Application procedure: Open for all students of Aalto University. It is recommended that the student discuss the choice of courses with Ruth Kaila.

Quotas and restrictions: No quotas for the minor, but some elective courses may have space for a limited number of students. The minor is available for master’s level students.

Prerequisites: The minor requires basic knowledge in engineering mathematics and probability theory. Bachelor-level minor SCI3034 Systems Sciences is warmly recommended.

Content and structure of the minor

Financial engineering is the application of quantitative methods to solve problems arising in the practice of finance. As a discipline, it combines financial theory and applied mathematics with the use of computational methods and tools.

Finance is becoming increasingly demanding due to the continual development of new financial products, availability of big data sets, rapid technological advances, and changes in regulation. This has created a growing demand for financial risk management and opportunities for advanced quantitative analysis.

The minor in Financial Engineering provides students with a good understanding of financial mathematics and equips them with methodological and computational skills. Thus, the students are set to pursue successful careers in banking, insurance, risk management and consulting, or to become quantitative analysts for instance in the finance departments of manufacturing and service firms.

The minor consist of 10-15 credits of compulsory core courses and 5-15 credits of elective courses from three subject areas (i) systems and operations research, (ii) computational methods, (iii) advanced topics in finance.

 

Code

Name

Credits

Period                   

Core courses (10-15 cr)



Mandatory:

TU-E2210

Financial Engineering I

5

I-II

One or two of the following courses:
 


MS-E2114 Investment Science*5I-II

TU-E2220

Financial Engineering II5III

Elective courses (5-15 cr)

The credit requirement is fullfilled by completing sufficiently many courses from the following. Any courses except those from the subject area of the student's major can be selected.

Mathematical methods (Dept of Mathematics and Systems Analysis)

   

MS-C2105     

Introduction to Optimization

5

IV

MS-C2111

Stochastic Processes

5

I

MS-E2112      

Multivariate Statistical Analysis

5

III-IV

MS-E2117

Risk Analysis

5

III-IV

MS-E2177

Seminar on Case Studies in Operation Research

5-7

III-IV

Computational Methods (Dept of Computer Science)

 CS-E3210            

Machine Learning: Basic Principles

 5I-II
CS-E4600
Algorithmic Methods for Data Mining 5I-II
CS-E4890    

Deep Learning

 5IV-V
 CS-E4830  

Kernel Methods in Machine Learning

 5III-V
CS-E5710          
Bayesian Data Analysis 5I-II

 Any course in programming


Selected topics in Finance (Dept of Finance)

28C00300 Investment Management *, **
6III
28E35100Corporate Financial Management**6I
28C00800Financial Markets and Institutions**6II
TU-EVCourse with varying content

*Choose either MS-E2114 or 28C00300 but not both as they are largely overlapping.

**Limited admission bassed on study success; applications should be sent to the coordinating teacher, ruth.kaila(at)aalto.fi, latest one week before the course starts.