The Bendheim Center for FINANCE

Undergraduate Certificate in Finance (UCF)

Sophomore Open House

Director of Undergraduate Studies : Yacine Ait-SahaliaProgram Administrator: Melanie Heaney-Scott

April 3, 2020

What is finance?

• How are financial securities such as stocks, bonds, currencies

and derivatives priced and what information these prices carry

• How to construct and manage portfolios of financial and real

assets

• How to manage risk

• How corporation or other businesses finance themselves

• How to decide whether to invest in a project

• Public policy including monetary policy, financial-market and

banking regulation

The tools of finance

• Modern finance is eclectic

• Draws from many disciplines including

economics, mathematics, operations research,

engineering, computer science, psychology,

politics, and history.

Directly applicable

skills

Flexible:

allows you to

major in any dept

Multidisciplinary:

Combines methods

and courses

from multiple

departments

Why should I do it?

Economics,

ORFE

Woodrow Wilson,

Politics, History,

Sociology

Engineering,

Physics,

Math, Molecular

Biology

Architecture,

Art, Music,

Religion, History,

English

Certificate

in Finance

Open to Every Major

UCF CLASSES 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

WOMEN 17 25 17 21 24 28 28 37 23 29

MEN 46 54 53 51 58 63 66 62 62 48

WOMEN(%) 27% 32% 24% 32% 29% 30% 30% 37% 27% 38%

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

SOCIAL SCIENCES 7 11 5 6 4 4 5 6 2 1

NATURAL SCIENCES - - - - - - - - 5 3

ECON 26 32 34 35 36 40 37 45 45 41

HUMANITIES 4 5 2 4 1 4 1 5 2 -

ORFE 13 22 17 13 24 24 27 30 16 18

ENGINEERING 8 5 9 8 11 12 18 9 12 12

WWS 5 4 3 6 6 7 6 4 3 2

TOTAL UCF 63 79 70 72 82 91 94 99 85 79

Certificate Numbers: Past 10 Years

What does the certificate accomplish?

• The certificate teaches you the main methods employed in

finance

• It will attest to your proficiency in finance

• Upon graduation you will receive your degree

(A.B., B.S.E.) as well as the finance certificate

How do I obtain the UCF?

• 3 Prerequisites

– Mathematics

– Microeconomics

– Probability and statistics

• 2 core courses in finance

• 3 additional electives

• Senior thesis must be finance related or

separate finance independent work

ECO 300 or ECO 310

ECO 202 / ORF 245 / PSY 251 /

SOC 301 / POL 345 / WWS 200

PHY 301 & PHY 312

or a score of 5 in AP Statistics (must be on your transcript)

MAT 175 or higher {MAT 201 & 202 or MAT 203 & 204}

PrerequisitesMicroeconomics, Mathematics, Probability and statistics

Prerequisites: Microeconomics

Statistics

Math

2 Core

+ 3 Electives:Minimum C+ average

Minimum grade requirements

Additional minimum grade requirements for ECO & ORF majors:

B- average on the prerequisites

and C+ average on the two core courses

ECO202Statistics and Data

Analysis for

Economists

ORF245Fundamentals of

Engineering

Statistics

WWS200Statistics for

Social Science

PSY251Quantitative

MethodsSOC301Sociological

Research

Methods

PHY301/

PHY312

Statistical

Mechanics

and Politics

APStatsScore = 5

Statistics

Requirement

POL345

Quantitative

Analysis

and Politics

Microeconomics and Mathematics

• Micro– ECO300: Microeconomic Theory

– ECO 310: Microeconomic Theory: A

Mathematical Approach

• Math– MAT 175: Mathematics for Economics / Life Sciences

– or higher…for example, MAT 201 and MAT202 or MAT

203 and MAT 204

– AP Math courses not eligible

ECO 362

Financial

InvestmentsFall Term Only

ECO 363Corporate Finance

and Financial

InstitutionsSpring Term Only

Core Courses

List 1 ElectivesFinancial

Applications

List 2 ElectivesGeneral Methodology

for Finance

3 Elective Courses

Note: At least 2 of the 3 electives must be from List 1 for ECO and ORF Majors; 1 for others.

List 1 - Financial Applications

• ECO 315: Topics in Macroeconomics

• ECO 342: Money and Banking

• ECO 344: Macroeconomic Policy

• ECO 353: International Monetary Economics

• ECO 361: Financial Accounting

• ECO 461: Entrepreneurship, Innovation, and Venture Capital

• ECO 462: Portfolio Theory and Asset Management

• ECO 463: International Financial Markets

• ECO 464: Corporate Restructuring

• ECO 465: Options, Futures and Financial Derivatives

• ECO 466: Fixed Income: Models and Applications

• ECO 467: Institutional Finance

• ECO 468: Behavioral Finance

• ECO 469: Valuation and Security Analysis

• ECO 491: Cases in Financial Risk Management

• ECO 492: Asian Capital Markets

• ECO 493: Financial Crisis

• ECO 494: Chinese Financial and Monetary Systems

List 1 (cont.)

• EGR 395: Venture Capital and Finance of Innovation

• EGR 475: Building and Operating Complex and Regulated Ventures

• EGR 491: High-Tech Entrepreneurship

• ORF 335: Introduction to Financial Mathematics

• ORF 435: Financial Risk Management

• ORF 474: Special Topics in Operations Research and Financial Engineering

• WWS 466: Financial History

• WWS 524: Advanced Macroeconomics

• WWS 582f: House of Debt: Understanding Macro & Financial Policy

List 2 – Methodology for Finance

• APC 350: Introduction to Differential Equations

• CEE 460: Risk Assessment and Management

• COS 318: Operating Systems

• COS 324: Introduction to Machine Learning

• COS 333: Advanced Programming Techniques

• COS 423: Theory of Algorithms

• COS 424: Fundamentals of Machine Learning

• COS 432: Information Security

• COS 436: Human-Computer Interface Technology

• COS 445: Economics and Computing

• COS 461: Computer Networks

• ECO 311: Macroeconomics: A Mathematical Approach

• ECO 312: Econometrics: A Mathematical Approach

• ECO 313: Econometric Applications

• ECO 317: The Economics of Uncertainty

• ECO 365: Introduction to Empirical Methodology in Finance

• ECO 414: Introduction to Economic Dynamics

• ECO 418: Strategy and Information

• ECO 488: Applied Game Theory

List 2 (cont.)

• MAE 305: Mathematics in Engineering I

• MAE 306: Mathematics in Engineering II

• MAT 325: Analysis I: Fournier Series and Partial Differential Equations

• MAT 330: Complex Analysis with Applications

• MAT 335: Analysis II: Complex Analysis

• MAT 385: Probability Theory

• MAT 486: Random Processes

• ORF 307: Optimization

• ORF 309: Probability and Stochastic Systems

• ORF 311: Optimization under Uncertainty

• ORF 350: Analysis of Big Data

• ORF 363: Computing and Optimization for the Physical and Social Sciences

• ORF 401: Electric Commerce

• ORF 405: Regression and Applied Time Series

• ORF 409: Introduction to Monte Carlo Simulation

• ORF 455: Energy and Commodities Markets

• WWS 340: Psychology of Decision Making

Course Substitution Approval for Electives

• Courses not listed may be taken as an elective if approved by

DUS: submit the request by e-mail and explain how the

course relates to your program of study in finance

• The two core courses must be completed at Princeton.

• Students are permitted to use course(s) completed abroad to

fulfill a maximum of one of their three elective courses with

DUS approval

Not all courses are offered every year

Check with the relevant department and

registrar website to confirm course offerings

Senior Thesis

If you are an ECO or ORF major

• You must include a chapter in your senior thesis with significant finance content

• And submit a copy by the senior thesis due date

Independent Work

If you are NOT an ECO or ORF major:

• You are encouraged to integrate finance into your junior independent work

or senior thesis.

• Alternatively, you can submit an independent paper (approximately 12-15

pages) as a separate independent paper with significant finance content

• You may use the same independent work, including junior papers or senior

thesis, to fulfill the finance certificate independent work requirement plus

one other (your department’s requirement, or a different certificate’s

requirement), but not more than one other.

Tracks: How to Select Electives

Selection of electives is based upon:

• Individual needs and preferences

• Following a suggested track with courses forming a

coherent group

– Math Finance Track

– Derivatives Pricing and Risk Management Track

– Investment Management Track

– Corporate Finance Track

– Information Technologies for Finance Track

– Behavioral Finance

– Finance and Public Policy

Mathematical Finance Track

• Consider this track if you are interested in financial

engineering or the design of financial securities that help

manage risk

• You will study the mathematics of financial asset pricing

– stochastic calculus

– application of stochastic calculus to arbitrage and equilibrium in

dynamic economies

Derivatives Pricing and Risk Management Track

• Consider this track if you are interested in risk

management and financial engineering

• You will learn

– how to price options, futures and other derivative securities

– how to use these securities to manage risk

Investment Management Track

• Consider this track if you are interested in applying

macroeconomic analysis and statistical forecasting

techniques to portfolio management

• You will learn about

– the design and functioning of securities markets

– the behavior and determinants of the returns or profits on these

securities

– how to construct optimal portfolios of securities

– how to manage these portfolios

Information Technologies for Finance Track

• Consider this track if you are interested in applying

computer-based technologies to the financial and business

world

• You will study

– the design of efficient trading systems

– the security of computer networks

– managing large databases

– parallel processing

– algorithms, multimedia and web interfaces

Corporate Finance Track

• Consider this track if you are interested in working for a

corporation or starting your own business

• You will learn

– how to choose and finance investment projects

– about financial restructuring - is there an optimal debt-equity ratio

(capital structure)

– merger and acquisition analysis

– what determines dividend policy

– about management and regulation of banks/financial institutions

Behavioral Finance Track

• Consider this track if you are interested in how human

psychology, including behavioral biases influence financial

decision-making and ultimately asset prices

• You will learn

– Develop models of financial markets under the influence of

investor psychology

– Use these models of market inefficiency to develop investment

strategies

– Understand how market inefficiency affects the real economy

Finance & Public Policy Track

• Consider this track if you are interested in the interaction

between finance & policy, including public finance,

responses to financial crisis, central banking and securities

law

• You will learn

– Models of banking, credit and financial crises

– Apply these models and methods to study housing markets

– Understand the role of central banks in shaping financial markets

FAQ

• Can I use a study abroad course?

- Yes for one of your electives; you must have the approval forms

signed by the DUS

• Can I PDF a course?

- All courses must be taken for a letter grade. However, if you take

MAT201/202 of higher, the second of the Math courses can be taken

as a PDF as long as your other grade is strong. You must advise us of

your decision to do so at the time of application in the Additional

information section. Additionally, if you have taken a course for

P/D/F that you want to use, you can ask for the P/D/F can be

rescinded, see the policy in the Undergraduate Announcement under

Grading in the Policies tab.

• Can I take a course over the summer at another university?

- Yes, you must seek approval from the Dean of the College

and the DUS

FAQ • Is there a final GPA to meet to earn the certificate?

- Yes there is. All students must have earned a minimum of C+ (2.30)

averaged out over the 2 Core courses and 3 Elective courses. In addition,

ECO & ORF majors must earn an average C+ or above across the 2 Core

courses

• Can I take ECO300 or ECO310 at the same time as ECO362?

- Yes , you may take them at the same time in the fall of your junior

year. However, admission is provisional until completion of all

prerequisites including ECO300 or ECO310

• Does he topic of my independent work need to be pre-approved?

- Refer to the sample topics from previous years provided above, under

Independent Work. You should discuss your choice of topic with

your independent work advisor. You do not need pre-approval of your

topic from Director of Undergraduate Studies as long as it is a finance

topic.

Please visit the FAQ pages for more answers

http://bcf.princeton.edu/ucf/courses/

How to Apply

www.princeton.edu/bcf/undergraduate/application

Electronic Application via SharePoint

Submission Deadline:

MAY 31 OF YOUR SOPHOMORE YEAR

Contact Us:

• bcf.princeton.edu/ucf/

• Contact: Yacine Ait-Sahalia, Director of Undergraduate Studies

email: yacine@princeton.eduphone: 258-4015office: JRRB 304

• Contact: Melanie Heaney-Scott, Academic Admin.email: mheaney@princeton.eduphone: 258-0940office: JRRB 103B