FinanceNut

Hi all,

I have a question regarding the mathematics level that you need for finance. I know that quants like D.E. Shaw and Finance Ph.Ds like Vikram Pandit have strong mathematical backgrounds. I also realize that anyone who works at a hedge fund should have at least a respectable level of math. However, I've hit a crossroads in my academic career. I just completed multivariable calculus last semester, a class that although I did well in it, I did not enjoy at all.

I am now trying to decide whether or not I should take linear algebra this semester or not. This class will cover things like linear transformations, determinants, eigenvectors, eigenvalues, inner products and linear spaces. The class will also review orthogonality, datafitting, diff eq (including nonlinear systems), and partial diff eq (including Fourier's Theory).

How much of this stuff would a non-quant hedge fund use? Forgetting for a minute that I did not enjoy multivariable, is this class an important one for me to take? I have no intention of going beyond this in mathematics, so if I choose to take linear algebra, this will be the last math class I take (besides statistics, of course).

Any help would be greatly appreciated!

Sachmoney

A: To give you an idea, look at the descriptions of the following Princeton undergraduate courses: in Mathematics, we expect applicants to be familiar at a minimum with the material in: MAT 200 (Linear Algebra and Multivariable Calculus) and in Probability and Statistics at the level of an introductory course such as ECO 200 (Statistics and Data Analysis for Economists) or ORF 245 (Fundamentals of Engineering Statistics).

In addition, we are offering to all incoming MFin students a two-week refresher course in Math prior to the beginning of classes in the Fall semester. This course is required.


That's what Princeton's Masters in Finance program looks for so I figure you need similar math.

Stochasticbio

Linear Algebra is not like multivariable calculus at all..maybe except for inner products where you have to take integrals.

For finance, you should take linear algebra and a course in probability/statistics.

CesareBorgia

If you don't want to go into a quant hedge fund, you will be fine imo (almost everywhere) with high school math.

If you want to go into a quant hedge fund, you better know measure-theoretic probability and have facility with stochastic processes.

-Also, (finite vector space) linear algebra is really easy. "A mile wide, an inch deep" is the saying: a lot of concepts, but no real depth.