Financial Economics

The Financial Economics major guides students interested in a career in finance to the most useful courses in the two departments currently teaching financial topics, and makes it easier for students who have strong financial economics interests to obtain a minor or area of concentration outside mathematics or economics. Students wishing to major in Financial Economics are required to take the core economics theory courses in macroeconomics and microeconomics to provide a strong theoretical foundation. Beyond those courses, the student specializes in finance. The two departments’ offerings in Mathematics and Economics complement each other well. Economics courses reinforce the concepts of optimization and comparative statics and give students command of computational tools that are ubiquitous in the world of finance. The mathematics courses examine mathematical models and lines of reasoning used in finance.

Requirements for the Major

Core
ECO-101Principles of Economics1
ECO-251Economic Approach With Excel0.5
ECO-253Introduction to Econometrics1
ECO-291Intermediate Microeconomic Theory1
ECO-292Intermediate Macro1
ECO-361Corporate Finance1
ECO-362Money and Banking1
MAT-251Mathematical Finance0.5
MAT-252Mathematical Interest Theory0.5
MAT-253Probability Models0.5
MAT-254Statistical Models0.5
MAT-353Probability Models II0.5
Total Credits9
Collateral Requirements
MAT-111Calculus I1
MAT-112Calculus II1
Total Credits2

We recommend that Financial Economics students take ECO377 Investment (if available). Students taking a Financial Economics major may have a minor or second major in Mathematics, but may not count MAT-251 Mathematical Finance, MAT-252 Mathematical Interest Theory, MAT-253 Probability Models, MAT-254 Statistical Models, or MAT-353 Probability Models II toward that major or minor. Students taking a Financial Economics major may NOT have a major or minor in Economics.

Comprehensive Exam

The written and oral comprehensive exams, designed jointly by the Economics and Mathematics departments and specifically targeted to the financial economics student, serve as a capstone as well as an assessment experience.  

Suggested Route through the Financial Economics Major

Plan of Study Grid
Freshman
Fall SemesterCredits
MAT-111 Calculus I 1 1
 Credits1
Spring Semester
MAT-112 Calculus II 1 1
ECO-101 Principles of Economics 2 1
 Credits2
Sophomore
Fall Semester
ECO-291 Intermediate Microeconomic Theory 1
ECO-251 Economic Approach With Excel 0.5
MAT-253 Probability Models 0.5
MAT-353 Probability Models II 0.5
 Credits2.5
Spring Semester
MAT-254 Statistical Models 0.5
ECO-253 Introduction to Econometrics 1
 Credits1.5
Junior
Fall Semester
MAT-251 Mathematical Finance 0.5
MAT-252 Mathematical Interest Theory 0.5
ECO-361 Corporate Finance 3 1
ECO-292 Intermediate Macro 1
 Credits3
Senior
Fall Semester
ECO-362 Money and Banking 1
 Credits1
 Total Credits11

Several of the MAT courses can be delayed one year. Thus students beginning with MAT-010 Pre-Calc With Intro to Calculus could follow this path:

Plan of Study Grid
Freshman
Fall SemesterCredits
MAT-010 Pre-Calc With Intro to Calculus 1 1
 Credits1
Spring Semester
ECO-101 Principles of Economics 2 1
MAT-110 Calc I With Pre-Calc Review 1 1
 Credits2
Sophomore
Fall Semester
MAT-112 Calculus II 1 1
ECO-251 Economic Approach With Excel 0.5
ECO-291 Intermediate Microeconomic Theory 1
 Credits2.5
Spring Semester
MAT-254 Statistical Models 0.5
ECO-253 Introduction to Econometrics 1
 Credits1.5
Junior
Fall Semester
ECO-361 Corporate Finance 3 1
MAT-253 Probability Models 0.5
MAT-353 Probability Models II 0.5
 Credits2
Spring Semester
ECO-292 Intermediate Macro 1
 Credits1
Senior
Fall Semester
MAT-251 Mathematical Finance 0.5
MAT-252 Mathematical Interest Theory 0.5
ECO-362 Money and Banking 1
 Credits2
 Total Credits12

Senior comprehensive examinations for the Financial Economics major will be jointly written and administered by the Economics and Mathematics departments and overseen by the two department chairs. For further questions contact the Economics department chair.