What is QCF?
Introduction to Quantitative and Computational Finance
Quantitative and Computational Finance (QCF) is a field with enormous impact, excellent employment opportunities, and tremendous growth. This field forms an ever-expanding part of the financial sector, present in numerous ways today.
Today, the principles of finance are being combined with advanced mathematical structures to form useful financial products, strategies and models that are tested and implemented with the use of advanced quantitative techniques. Use of computer technology is pervasive throughout the entire process. These financial products, strategies and models are an integral part of the overall financial activity in several areas; in addition to the basic modeling and forecasting of the underlying financial markets are the areas involving
- financial instrument development and usage: corporations and financial institutions use an expanding variety of standard and complex financial instruments to structure their transactions in ways that manage risk and assure performance, to increase their total and net earnings, and to generate capital for growth and development;
- investment: fund managers and investment analysts use sophisticated strategies and techniques to ensure desired income streams and to increase returns; and
- risk analysis: financial institutions seek to manage risks associated with extreme events, defaults, liquidity constraints and operational factors.
Quantitative and Computational Finance is an area referred to under a variety of names, for example, 'computational finance', 'financial engineering', 'mathematical finance' and 'financial mathematics'. But in all cases there is an effort that involves 'financial', 'mathematical', 'quantitative' and 'computational' thinking to build, test and implement models that are at the center of these financial activities.
Development of the MS QCF program has been supported in part by the Alfred P. Sloan Foundation.