1 Quantitative Finance University of Colorado Information Meeting April 8, 2004

2 Agenda Welcome Short update on program status Kristie Henderson’s story Curriculum/registration discussion

3 Program Approval Status Executive Committee of the Actuarial Studies Certificate Program Undergraduate Curriculum and Program Committee Waiting for UCPC action objections (April 20) (If 5 faculty members object, a full faculty vote is needed) Dean of Leeds (April 20?) Dean of A&S (?)

4 UCPC Approval Means: Non-Leeds students in good standing get access to Business courses as though they are Business majors Any of the level probability/stats classes we recommend replace BCOR 2010 (Business Stats) The above course is a co-requisite for BCOR 2100 rather than a prerequisite. For Business students, MATH 3130 or APPM 3310 replace the finite math mod (1710) For Business students, Calc I & II replace the calc math mod (1081)

5 Where We Fit The Actuarial Studies Certificate Program will be renamed the Actuarial Studies and Quantitative Finance Certificate Program There will be two separate certificates The Quantitative Finance Certificate will be signed by the Dean of A&S and the Dean of Leeds

6 Certificate Grade Requirements A grade of “B” in each of Calculus 1 through 3 AP score of 4 = “B” Overall GPA of 3.0 in certificate coursework A grade of “C-” or better in each certificate course

7 BCOR 2010 For Fall / Summer Technically, the Quant Certificate Program will not be approved before your first opportunity to register How to handle the remote chance that it will not get approved? If you are planning to take 16 or fewer credit hours in the fall, you could just sign up for BCOR 2010 in addition and drop it upon approval If you are planning on taking 17 or more hours, adding BOCR 2010 will put you over the 19 credit limit BCOR 2010 has historically been easy to get enrolled in during the fall, even late. A particular recitation my be full.

8 Keep An Open Mind “I find that a great part of the information I have was acquired by looking up something and finding something else on the way” - Franklin P. Adams Quantitative Finance gives you a goal to shoot at that should result in good opportunities You may find something along the way that you like better The base you establish with this curriculum increases your options later

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12 Choosing a Major The engineering school Applied Math the right fit Actuarial Studies and Internship at Anthem Blue Cross Blue Shield Change of plans

13 Economics Introductory and Intermediate Microeconomics Introductory and Intermediate Macroeconomics Introduction to Econometrics Computer Applications in Economics Natural Resource Economics Money and Banking Systems

14 Math and Computing APPLIED MATH Calculus 1-3 Differential Equations Applied Probability Markov Processes Complex Variables Boundary Value Problems A&S MATH Linear Algebra Numeric Analysis Abstract Math Eng. Computing Intro to Computing Numeric Computing Java 1 & 2

15 Business / Finance Business Information Systems Accounting and Financial Analysis 1 and 2 Corporate Finance Financial Markets and Institutions Investment and Portfolio Management

16 After Graduation GMAC Commercial Mortgage Preparation for New York Interview Interview with Smith Breeden Trip to Goldman Sachs Acceptance of the research analyst position at Smith Breeden Associates

17 Goldman Sachs Investment Banking Sales & Trading Investment Management GSAM

18 Smith Breeden Associates Structure Portfolio Management Research Marketing/ Client Service Back Office / IT Management Group

19 What in the world do I do all day at work? Responsible for the production of the Daily Market Analysis Work with the traders to provide the analysis they need to make informed investment decisions Current research project: Home Equity Asset Backed Securities

20 Home Equity Default Model h(t) = h 0 (t)*exp(B 0 *x 0 + B 1 *x 1 +…+ B k *x k )

21 Curriculum Samples In Handout More Finance/Acctng More Math/Stats Minimum Theory + MS Accounting Recommended

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24 Statistics Tracks Calc 2 – APPM APPM 4580 – APPM 7400 Calc 3 – APPM 3050/MATH 4510 – APPM 4520/MATH 4520 – APPM 4540/MATH 4540

25 Calculus / Statistics Sequence vs. BCOR Sequence Semester 1Semester 2Semester 3Semester 4 BCOR 2000BCOR 2100 Calc 1Calc 2Calc 3APPM 3050 Calc 1Calc 2APPM 4570 Calc 1Calc 2Calc 3

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