Mathematics and Finance
Are you fascinated by the seemingly random movement of stock prices? Have you ever wondered if such movements could be modelled and simulated? Would a mathematical model allow us to make conclusions about the risk of trading strategies? If you are intrigued by such questions, one of our programs in Mathematics and Finance is the right choice for you. Our programs provide you with the background in mathematics and finance needed to study these questions. Since this is an interdisciplinary area whose understanding requires a broad education, the programs also include courses from statistics, economics, accounting, and operations management.
Careers for Financial Mathematicians
A degree in Mathematics and Finance provides a solid foundation for careers in the financial industry and graduate studies in financial engineering and mathematical finance. Graduates of our program can apply mathematical and statistical techniques to analyze financial products and manage financial risk. They find employment in all areas where quantitative skills combined with financial understanding are required, for example at banks and investment firms in areas such as development of trading strategies, portfolio analysis, and risk management.
Graduates of our program also are well positioned to:
- earn the Chartered Financial Analyst® (CFA) designation,
- pursue diverse opportunities in quantitative finance,
- become accredited as a professional actuary,
- or to acquire professional certification in risk management.
More information on these certifications can be found below.
Degree Options in Mathematics and Finance
Students can enter one of our programs in Mathematics and Finance in their second or third year. These are quota programs, meaning that only a limited number of students can be registered in these programs, and, therefore, admission is competitive.
Honors in Mathematics and Finance:
- Download the program planner for this degree program
Major in Mathematics and Finance:
- Download the program planner for this degree program
- This program was previously offered as Specialization in Mathematics and Finance. Students in the Specialization in Mathematics and Finance can finish their programs, but we do not admit new students into the Specialization program. Instead, students shall consider the Major in Mathematics and Finance.
Chartered Financial Analyst® (CFA)
Chartered Financial Analyst® (CFA) is a credential for finance and investment professionals offered by the CFA Institute. The CFA® is a globally recognized standard for competence and integrity of financial analysts.
To become a CFA® charterholder, a candidate must pass three CFA® Program exams and have four years of qualified investment work experience. You may write the first exam as early as your final year of your Bachelor's degree.
The following University of Alberta courses are useful for exam preparation:
Topic |
University of Alberta Courses |
|---|---|
| Theory of interest | MATH 253 |
| Quantitative analysis | STAT 265, ECON 399 or STAT 378 |
| Economics | ECON 281, 282 |
| Mathematical finance | MATH 356, 357 |
| Accounting | ACCTG 211/311, 312/412 |
| Finance | FIN 201/301, 312/412, 413, 418 |
For further details, visit the CFA® Program pages of the CFA Institute.
There is an annual CFA® Night at the University of Alberta, where charterholders speak about the CFA® program and their careers. For more information on this event, see the Facebook page of the Business Finance Association, which hosts this event.
Partnership with the CQF Institute
The University of Alberta is an academic partner of the CQF (Certificate in Quantitative Finance) Institute. Our students can register as free members and have the opportunity to access the latest CQF Institute membership resources, including events, career tools, workshops, and thought leadership content. Students enrolled in our Mathematics and Finance programs will receive once per year (typically in September) news on the CQF Institute with the option to sign up. For more information, please contact Chris Frei.
Actuarial Science
Actuarial science is about assessing risk, mainly used in the insurance industry. While
we do not offer a degree program in actuarial science, a good preparation in actuarial
science can be achieved through one of our Mathematics and Finance programs or
Statistics programs.
Actuaries are accredited by professional organizations such as the Society of Actuaries
(SOA) and the Casualty Actuarial Society (CAS). The SOA covers life, health, and
pension fields, while the CAS primarily focuses on property and casualty insurance.
Both organizations require passing a series of actuarial exams and completing
Validation by Educational Experience (VEE) requirements.
It is possible for students to take some of the exam modules while completing their
degree. The following courses at the University of Alberta are helpful in preparing for the
exam modules:
SOA Exam Module |
University of Alberta Courses |
|---|---|
| Probability (shared with CAS) | STAT 265, 266 |
| Financial Mathematics (shared with CAS) |
MATH 253, FIN 201/301 |
| Investment and Financial Markets | MATH 356, 357, FIN 201/301 |
| Long-Term Actuarial Mathematics | STAT 353, 432, and a significant portion of topics through self-study |
| Short-Term Actuarial Mathematics | STAT 453, and a significant portion of topics through self-study |
| Statistics for Risk Modeling | STAT 378, 479, and a significant portion of topics through self-study |
| Predictive Analytics | MGTSC 405, and a significant portion of topics through self-study |
CAS Exam Module |
University of Alberta Courses |
|---|---|
| Exam 1 (shared with SOA) | STAT 265, 266 |
| Exam 2 (shared with SOA) | MATH 253, FIN 201/301 |
| MAS-I | STAT 266, STAT 372, STAT 378/STAT 441, STAT 371 |
| MAS-II | STAT 378/STAT 441, STAT 479 |
| General Skills | CMPUT 291 (highly recommended for database management skills) |
VEE qualifications can be achieved by obtaining a minimum of a grade of B- in specific courses, as follows:
VEE Area |
University of Alberta Courses |
|---|---|
| Economics (for both SOA and CAS) | ECON 101 (or 281) and ECON 102 (or 282) |
| Accounting and Finance (for both SOA and CAS) | ACCTG 211/311 (200/300 or 501) and FIN 201/301 (or 501) |
| Mathematical Statistics (for SOA) | STAT 266 and STAT 372 |
For more information on the requirements, visit the SOA website and CAS website.
For more information about the actuarial profession in general, visit the Be an
Actuary website.
Professional Certifications in Risk Management
There are several international professional certifications in risk management:
- Energy Risk Professional (ERP), offered by the Global Association of Risk Professionals
- Financial Risk Manager (FRM), offered by the Global Association of Risk Professionals
- Professional Risk Manager (PRM), offered by the Professional Risk Managers' International Association
The Energy Risk Professional (ERP) certification is for professionals with careers in the oil, coal, natural gas, and alternative energy industries to manage risk in a real-world energy environment.
The Financial Risk Manager (FRM) and Professional Risk Manager (PRM) certifications are for professionals with careers in financial risk management. Compared to the Certified Financial Analyst® (CFA) designation, these certifications are focused more on financial risk management and less on other topics, and therefore are intended specifically for careers in financial risk management.
For more information on these certifications, visit the Global Associate of Risk Professionals (GARP) website and the Professional Risk Managers' International Association (PRMIA) website.
The Edmonton Chapter of PRMIA regularly organizes events on topics surrounding risk management. In particular, they organize an annual finance and risk management career conference at the University of Alberta, usually around November (students registered in one of our degree programs will receive a notice via the departmental student mailing lists; other students should contact us).