The Bendheim Center for FINANCE Undergraduate Certificate in Finance (UCF) Sophomore Open House Program Representative: Yacine Ait-Sahalia Program Administrator:

The Bendheim Center for FINANCE

Undergraduate Certificate in Finance (UCF)

Sophomore Open House

Program Representative: Yacine Ait-SahaliaProgram Administrator: Melanie Heaney-Scott

April 4, 2014

How to Apply

www.princeton.edu/bcf/undergraduate/application

**APPLICATION DEADLINE: MAY 31ST

Electronic Application via SharePoint access is granted to the Class of 2016 on April 1, 2014

What is finance?

• How are financial securities such as stocks, bonds, currencies and derivative assets priced?

• How to manage a portfolio of financial and real assets?

• How should a corporation or other business finance its real assets?

• How should corporations be organized?

• What should businesses invest in?

Marketable Skills

Flexible -allows you to

have any major

Multidisciplinary -courses across

departments

Why should I do it?

Economics, ORFE

Woodrow Wilson, Politics

Engineering, Physics, Math, Molecular Biology

Architecture, Music, Religion, History, English, Art

Certificate in Finance

Who Can Apply? Every Major

What does the certificate accomplish?

• The certificate attests to your proficiency in finance

• Upon graduation you will receive your degree (e.g. A.B., B.S.E.) as well as this certificate

• You enter the program in your junior (and in special cases, senior) year

How do I obtain an UCF?

• Prerequisites– Mathematics– Probability and statistics

– Microeconomics

• Two required core courses in finance

• Three additional electives

• Senior thesis must be finance related or separate finance independent work

Prerequisites:Math

Statistics †MicroeconomicsB- average*

ECO 362-363+ 3 Electives:> C+ average

Grade requirements

† A 5 in AP Stats DOES fulfill the statistics prerequisite* Grade requirements for ECO/ORF majors

ECO 310

ECO 202/MAT 222/ORF245/PHY301 & PHY312/POL 345/PSY251/SOC301/WWS332

MAT175 or higher {MAT201 & 202 or MAT 203 & 204}

Prerequisites

ECO202Statistics and Data

Analysis for Economists

ORF245Fundamentals of

Engineering Statistics

MAT222Introduction to

Statistics

WWS332Quantitative

Analysis for Public Policy

PSY251Quantitative

Methods

SOC301SociologicalResearch Methods

WWS 200Statistics and Social Science

PHY301/PHY312

Statistical Mechanics and Politics

APStatsScore = 5

StatisticsRequirement

Microeconomics and Mathematics

• ECO 310: Microeconomic Theory: A Mathematical Approach

• MAT 175: Mathematics for Economics/Life Sciences

{or higher…for example, MAT 201 and MAT202 0r MAT 203 and MAT 204}

ECO 362: Financial

InvestmentsFall Term Only

ECO 363:Corporate Finance

and FinancialInstitutions

Spring Term Only

List 1 ElectivesAt least 2 for

Eco/Orfe;1 for all others

List 2 Electives

Total of 3 electives

List 1 - Financial Applications• COS 445: Networks, Economics and Computing• EAP 402: The Japanese Financial System• ECO 207: Financial Accounting• ECO 326: Economics of the Internet: The Digital Revolution• ECO 332: Economics of Health and Health Care• ECO 342: Money and Banking• ECO 348: The Great Recession: Causes, Consequences, and Remedies• ECO 353: International Monetary Economics• ECO 365: Empirical Methodology of Finance• ECO 414: Introduction to Economic Dynamics• 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 490: Financial Accounting• ECO 491: Cases in Financial Risk Management• ECO 492: The Rise of Asian Capital Markets• ECO 493: Financial Crisis

List 1 (cont.)

• ORF 335: Introduction to Financial Engineering• ORF 350: Analysis of Big Data• ORF 435: Financial Risk Management• POL345: Quantitative Analysis and Politics• POL348: Politics and Finance• WWS 332: Quantitative Analysis for Public Policy• WWS 340: History of Financial Crises• WWS 408: Finance and Public Policy• WWS 451: Special Topics in Public Affairs• WWS 524: Advanced Macroeconomics

List 2 - General Methodology for Finance• APC 350: Introduction to Differential Equations• CEE 460: Risk Assessment and Measurement• COS 318: Operating Systems• COS 323: Computing for the Physical and Social Sciences• COS 333: Advanced Programming Techniques• COS 423: Theory of Algorithms• COS 424: Interacting with Data• COS 425: Database and Information Management Systems• COS 432: Information Security• COS 436: Human-Computer Interface Technology• COS 444: Internet Auctions: Theory and Practice• COS 461: Computer Networks• ECO 311: Macroeconomics: A Mathematical Approach• ECO 312: Econometrics: A Mathematical Approach• ECO 313: Econometric Applications• ECO 315: Topics in Macroeconomics• ECO 317: The Economics of Uncertainty• ECO 321: Industrial Organization• ECO 322: Theory of Contracts and the Firm• ECO 341: Public Finance• ECO 370: American Economic History• ECO 385: Ethics and Economics• ECO 418: Strategy and Information

List 2 (cont.)

• ELE 491: High-Tech Entrepreneurship• HIS 364: International Economic History in the 20th Century• MAT 325: Analysis I: Fourier Series and Partial Diff Equations• MAT 330: Complex Analysis with Applications• MAT 335: Analysis II: Complex Analysis • MAT 385: Probability Theory• MAT 486: Random Processes• MAT 391: Mathematics in Engineering I (ODE, PDE)[MAE305/EGR305/CBE305]• MAT 392: Mathematics in Engineering II (PDE, Complex Variables)[MAE306]• ORF 307: Optimization• ORF 309: Probability and Stochastic Systems• ORF 311: Optimization Under Uncertainty• ORF 374: Special Topics in Operations Research and Financial Engineering• ORF 401: Electronic Commerce• ORF 405: Regression and Applied Time Series• ORF 409: Introduction to Monte Carlo Simulation• ORF 474: Special Topics in Operations Research and Financial Engineering

Course Substitution Approval for Electives

Courses not listed may be taken as an elective if you submit the request in writing (e-mail) to Professor Ait-Sahalia and prove that it forms part of a coherent program in finance

Not all courses are offered every year

Check with the relevant department to confirm course offerings

Typical Course Map for the Finance Certificate

• Freshman: Fall ECO100, MAT201 or 175

• Freshman: Spring ECO101, MAT202

• Sophomore: Fall ECO202

• Sophomore: Spring ECO310

• Junior: Fall ECO362, elective(s)

• Junior: Spring ECO363, elective(s)

• Senior: elective(s), thesis / indep. work

**See website for details on electives: http://www.princeton.edu/bcf

Senior Thesis

If you are an ECO or ORFE major

* You must write a senior thesis in your major department which contains significant finance content which will be verified with your thesis advisor in April of your senior year

Independent Work

If you are NOT an ECO or ORFE major:

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

• You can submit an independent paper (approximately 12-15 pgs). This can be written in conjunction with ECO 362 (fall) or ECO363 (spring) or as a separate independent paper with significant finance content

Tracks: How to Select Electives

Selection of electives is based upon:

• Individual needs and preferences

• Following a suggested track, wherein the courses form a coherent group

– Math Finance Track– Corporate Finance Track– Derivatives Pricing and Risk Management Track– Investment Management Track– Information Technologies for Finance Track

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

About UCF Students…..

UCF CLASSES  2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

UCF 57 82 87 126 113 125 158 129 85 88 63 79 74 79 118 105

ECON 135 110 81 110 99 106 112 116 113 119 99 128 124 139 134 123

  2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

WOMEN 12 16 31 36 35 42 48 36 24 31 17 25 17 25 33 39

MEN 45 66 56 90 78 83 110 93 61 57 46 54 57 54 85 66

WOMEN(%) 21% 20% 36% 29% 31% 34% 30% 28% 28% 35% 27% 32% 23% 32% 28% 37%

  2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

SCIENCES 4 12 16 22 16 13 26 13 21 18 14 12 12 15 30 17

ECON 38 41 30 58 48 55 55 57 30 28 26 32 32 37 43 44

HUMANITIES 0 2 4 6 8 2 12 10 7 6 5 9 7 6 7 3

ORFE 14 22 32 33 30 43 42 35 18 26 13 22 19 14 29 32

WWS/POLITICS 1 5 5 7 11 12 23 14 9 10 5 4 4 7 9 9

TOTAL UCF 57 82 87 126 113 125 158 129 85 88 63 79 74 79 118 105

How to Apply

Complete the application atWWW.PRINCETON.EDU/BCF/UNDERGRADUATE/APPLICATION

Submission Deadline: MAY 31 OF YOUR SOPHOMORE YEAR

How to obtain more information

• www.princeton.edu/bcf/undergraduate

• Contact Professor Ait-Sahaliaemail: [email protected]: 258-4015office: Bendheim 204, 26 Prospect Avenue

• Contact Melanie Heaney-Scottemail: [email protected]: 258-0940office: Bendheim 203, 26 Prospect Avenue