Undergrad preparation to becoming a quantitative analyst

[AlexanderJ]

After a lot of research and thinking, I narrowed it down to one of these degrees:

• Option 1: BSc, double majoring in CS + Mathematics (specializing in statistics)
• Option 2: Bachelor of Actuarial Science

I am in fist semester now and the subjects I am taking are common to both of these degrees but in semester 2 the subjects will be different so I need to decide to choose one or the other.

My university in ranked 7th in mathematical finance/actuarial science, 12th for CS and 8th for statistics but not even in the top 50 for pure maths. I know these rankings don't matter but just in case they do, I listed them.

Here is the course structure for option 1:

• 1st year: calculus 2, linear algebra, real analysis, introduction to CS, introduction to algorithms, and 3 more options. I am doing economics, intro to actuarial science and physics for the options.
• 2nd year: design and analysis of algorithms, probability, statistics, OOP, vector calculus, differential equations, data mining and pattern recognition, discrete mathematics and 2 more options. I am doing economics subjects for the options.
• 3rd year: linear statistical models, CS project, software modelling and design, stochastic modelling, artificial intelligence, advanced discrete mathematics, computer systems, graphics and interaction, probability and statistical inference and complex analysis

Here is the course structure for option 2:

• 1st year: calculus 2, linear algebra, real analysis, accounting 1, accounting 2, intro to actuarial science, intro microeconomics and intro macroeconomics.
• 2nd year: probability, statistics, intermediate macroeconomics, intermediate microeconomics, organisational behavior, financial mathematics 1, financial mathematics 2, and business finance.
• 3rd year: financial mathematics 3, actuarial modelling 1, actuarial modelling 2, contingencies, actuarial statistics and models for insurance and finance, corporate finance, and 1 option.

I am interested in both degrees. CS + maths gives me a very versatile degree with many options while actuarial is a very well structured degree that gives me a guaranteed career.

 

[GoIllini]

CS+ Stats or Math + Stats are a powerful combination. If you really want to work for an insurance company, there is nothing wrong with Actuarial Science, but you will have no trouble finding a job if you study Computer Science and can pass a coding interview.

 

[AlexanderJ]

Thank you very much for the reply.

The CS + maths double major takes 23/28 subjects so I need to do 5 subjects from a non-scientific department. I decided to do 2 microeconomics subjects, 2 macroeconomics subjects and intro to actuarial science just to get a taste for it.

Do you think that is a good idea or is it better if I do finance subjects?

I think I will stick with CS + statistics because I am genuinely interested in these fields, I like programming and very interested in artificial intelligence/machine learning.

After I finish my BSc, it is better for me to do a honors degree then a PhD in stats or CS or is it better to get an MFE? I am interested in doing a PhD on AI/ML so is that a bad idea? Should I do a PhD in quantitative finance?

 

[GoIllini]

I would take a class in derivatives pricing. At a US-based school, this would typically be a 400 level class and a bunch of business majors and finance people will invariably be complaining that it's "impossibly hard". The day after your professor introduces the Black-Scholes formula and students spend 20 minutes peppering your professor with questions like "What does ln mean?" and "What is the cumulative normal function?", half the students will drop the class.

 

[AlexanderJ]

Thank you very much for the suggestion. I found that class for my university and luckily it is available for BSc students (subjects like actuarial modelling and financial mathematics are not available for BSc students unfortunately).

In order to get into that class I need to have done 5 prerequisite classes: calculus 2, leaner algebra, business finance, probability and statistics so it seems like a very challenging class, which is more exciting!

This means I will have to take finance classes instead of economics so I will take business finance and corporate finance over the holidays instead of micro and macro economics and derivative pricing and investments in third year.

 

[Barny]

A little tip: nobody gives a damn where your university is ranked.

 

[AlexanderJ]

A little tip: nobody gives a damn where your university is ranked.

That is exactly why I said "I know these rankings don't matter". I listed them just in case they have any effect on my decision.

 

[DanM]

I would go with option 1.

 

[Yike Lu]

PhD is nice, but that decision is very far down the line and very much depends on your next few years in university. If I were you, I'd try to do a tech internship, a finance internship, and a summer research project in the field you're considering a PhD in. It will give you a flavor of what it's like.

The optimal order most likely has research first (locks you in less if you do it early on versus say junior year).

 

[AlexanderJ]

PhD is nice, but that decision is very far down the line and very much depends on your next few years in university. If I were you, I'd try to do a tech internship, a finance internship, and a summer research project in the field you're considering a PhD in. It will give you a flavor of what it's like.

The optimal order most likely has research first (locks you in less if you do it early on versus say junior year).

Sounds like a very good plan. I hope I can do the research project during the holidays of first year, not sure if it is available for first year students but I will talk to coordinators.

Very much appreciate your advice, thank you.

 

[Ken Abbott]

I think you'd be better off making sure that finance is a field you want to enter, first.

 

[AlexanderJ]

I think you'd be better off making sure that finance is a field you want to enter, first.

I have been thinking about this for more than a year. I think at this point I know for sure I want to do something quantitative (no law, medicine, etc.). I am not interested in traditional engineering (ME, EE, etc.) and I am not interested in physics research so I know for sure I want to work either in finance or tech and I am equally interested in both at the moment. I think there is a lot of overlap between these two fields so a CS+math degree will hopefully prepare me for both but I will eventually have to choose one or the other sometime soon. I think at this point I cannot know for sure which one is right for me until I get some first hand experience in both.

I am now working on my programming skills such that I can get involved in an open source project, this will give me a taste for software development. I need an internship to get a taste for finance, however, so I will work on getting one.

Thank you very much for the reply, Prof. Abbott.

 

[Barny]

Here's some advice: study what you enjoy and are interested in. Do as well as you possibly can in those studies. If you do further study, do it at the biggest brand name schools possible. Think about a career afterwards. The end.

 

[AlexanderJ]

Here's some advice: study what you enjoy and are interested in. Do as well as you possibly can in those studies. If you do further study, do it at the biggest brand name schools possible. Think about a career afterwards. The end.

That is pretty much the plan. I just want to make sure I don't waste my undergrad and that I am doing the courses that prepare me best for what ever happens afterwards.

Also, I just would like to get some tips on getting an internship with a bank. What sort of things do they usually like to see on resume? Do they ask technical questions in interview or does this differ from bank to bank?

Thank you.

 

[Yike Lu]

Make connections, learn about the field, polish your presentation skills, go to the career fair.

What you're doing course wise seems like it'll be good for the resume. Ask some people you know for some examples of professional resumes, maybe get a book about resume and interview prep. Some of the undergrad resumes I've seen are really bad structurally, as in they make it hard to assess qualifications (in addition to often being aesthetically bad).

 

[AlexanderJ]

Make connections, learn about the field, polish your presentation skills, go to the career fair.

What you're doing course wise seems like it'll be good for the resume. Ask some people you know for some examples of professional resumes, maybe get a book about resume and interview prep. Some of the undergrad resumes I've seen are really bad structurally, as in they make it hard to assess qualifications (in addition to often being aesthetically bad).

Thank you very much for the advice, Yike.