PhD in Finance vs. M.S. in Financial Engineering/Math Finance

[Joe Yu]

So what are the differences between PhD in Finance and M.S. in Financial Engineering/Math Finance? I know that PhD requires a thesis but M.S. doesnt. I am wondering about which one is more mathematically rigorous? I dont think Finance PhD curriculum has courses like Stochastic Calculus, Monte Carlo, etc. I guess PhD courses focus more theoretical aspect of finance? Are MSFE/math fin courses comparable to Finance PhD courses?

 

[Connor]

Well, a MFE is much shorter than a PhD and are generally considered professional degrees with a practical focus versus a PhD that is more theoretical and academic. From my knowledge, a finance PhD does not require you to take heavy math courses like Stochastic Calculus, but many programs allow you the freedom to customize your study to what you want so you could easily get as much or more math in during your time doing a PhD.

 

[GoIllini]

Many MFEs/MFMs do continue into PhDs- Chicago and Princeton are two good examples of schools that send about 1/4 of their class into academia afterwards.

Naturally, a 6-year PhD will be able to easily cover everything a 1-2 year MS can cover- and a whole lot more. If you want to start a hedge fund, six years in academia without any trading restrictions like you normally find at most banks is certainly one way to do it, but a PhD takes a lot of dedication.

 

[elliot]

Many MFEs/MFMs do continue into PhDs- Chicago and Princeton are two good examples of schools that send about 1/3-1/2 of their class into academia afterwards.

Do you have any article which gives the above information?

 

[GoIllini]

http://www.princeton.edu/bcf/graduate/placement/

Last year, I think the proportion of students going into academia was higher, but the point is that if you really want to go get an Econ or Finance PhD but have an engineering background, this is one way to make the transition.