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Financial engineering

Ravikrindi Ravi Teja (student) (297 Points)

09 June 2013

What is meant by Financial Engineering?

I have seen this word ina Novel. But has no idea about this. Can any one help me about this?

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Ashutosh (Lead Business Analyst) (71 Points)
Replied 16 February 2014

Dear Ravi, Financial engineering is a discipline at the intersection of finance, quants and technology which aims at risk managemett or portfolio optimisation or asset pricing. You would not hear many people knowing or working into this domain as qualifications required to persue is really difficult to attain and this is proved by the fact that it took you nearly 8 months to get a reply for your question.

Most common profile for FE is to calculate market risk and hedge them to avoid crisis like credit crisis in 2008. Its out and out mathematics and statistics which play a pivotal role all such calculations. Strangely the most successful people in this domains are the one who are phd in physics.

for out Berkely MFE program for more info.