To propagate practical know-how and empiricism, Nassim Nicholas Taleb, a financial derivatives specialist, argued that the environment in financial economics reminds one of medieval medicine which rejected the observations and experiences of the plebeian barbers and surgeons thus killing more patients than it saved.
Taleb added that financial economics poses a great danger to the system by creating more risks instead of reducing it, and from this backdrop arose my quest for a higher-level knowledge aimed at proving that modern financial economics, as a discipline, helps investors make more cognizant decisions about investment options. My expected career path would proceed from positions as a controller, treasurer, financial analyst, business development associate, investment banking associate, financial manager, and senior financial analyst.
The decision to pursue a degree in Mathematics & Economics has been the single most valuable investment I made in life; it enhanced my ability to critically analyse information, present well-structured arguments, and become a confident and effective team player. Therefore, a master’s degree in financial economics will provide me with the practical and theoretical knowledge I need to perform competitively as a key to any corporation’s decision-making process: determining how capital is raised and managed; directing the firm on investment options to choose; evaluating and suggesting what portion of profits should be returned shareholders; and presenting a forecast on what benefits would most likely accrue from mergers and acquisitions.
I am fascinated by the interrelation between economics and finance as separate disciplines, and how they inform, as well as influence each other. Interestingly, as a career financial manager, I have acquired brief field knowledge in the finance industry and understand, to an extent, how financial economics influence the markets and their agents.
Financial Economics focuses on forex and stock markets, with inclination to the relationship among financial variables such as prices, inflation and interest rates, as well as the impact of economic variables – GDP (gross domestic product) and CPI (consumer price index). I love this branch of knowledge not only because it involves building models based on two key concepts of uncertainty and the time-value of money, but because if differs from others due to its emphasis on monetary activities. I look forward to learning more about this highly quantitative field, with highlights on financial instruments, the markets, financial institutions and market regulations.
Lastly, the Portfolio Theory and Capital Asset Pricing Model are also appealing for graduate students like me who are interested in playing decision-making roles in corporations, with the aim of maximizing a firm’s value while simultaneously reducing its financial risks. Only a master of science degree in financial economics will help actualize my career goals.