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Analysis of Rationality of CUHK QFIN Curriculum GEUC 4011 2013-2014 Term 1 Group 14 Nov 18, 2013 HUANG Zilong1155026039 LI Chen1155015135 LI Zhen1155026042 ZENG Xuan1155002028

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Agenda Motivation and Objective Introduction to Quantitative Finance of CUHK Literature Review Research Methodology and Findings Conclusion

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Motivation and Objective Part One

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Motivation 1. Increased number of CUHK QFIN graduates Source: employment survey of CUHK, by Office of Student Affair

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2. Increased global competition in job market Replacements rather than new roles Competition with Singapore, Tokyo, Shanghai China supports Shanghai more Motivation Source: 2013 Banking & Financial Services Salary Guide, by Robert Half

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3. Most of QFIN students will enter job market after graduation Source: http://www.bschool.cuhk.edu.hk/pdf/QFIN_QFRM.pdf Motivation

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How do we define RATIONALITY How much can the curriculum help to develop studentscapability in preparing future career.

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RATIONALITY of CUHK QFIN Curriculum AssessAnalyze Objective

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To assess/analyze the rationality of CUHK QFIN Curriculum What affect the rationality? How rational is the curriculum?

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Introduction Part Two CUHK QFIN Program CUHK QFIN Curriculum

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Introduction CUHK QFIN Program Review History - Established in 1998 Mission and Vision - Quantitative and analytical skills - A global mindset and the curiosity to explore the outside world - The appreciation of the virtues of integrity, honesty and sense of responsibility

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Introduction CUHK QFIN Program Review Students Statistics - about 400 alumni and 200 students in the Program

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Introduction CUHK QFIN Curriculum 1.Faculty Package Courses Accounting, Decision Sciences & Managerial Economics 2. Major Required Courses Finance, Computer Science, Decision Sciences & Managerial Economics, Mathematics, and Statistics 3. Major Elective Courses Quantitative Methods, Business, Core, Seminar 4. Credit Requirement

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Introduction CUHK QFIN Curriculum 5. Weightage of different course categories - Math/ Finance/ Statistics/ Economics

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Literature Review Part Three

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Literature Review (Explicit Approach) Teaching and Learning Quality-process Reviews (HK Assessment) Teaching Activities performed by academic staff in performing main duties Learning Methods used by institutions to continuously improving teaching to achieve maximized performance

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Curriculum DesignPedagogical DesignImplementation QualityOutcome AssessmentResource Provision Literature Review (Explicit Approach)

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Curriculum Design Pedagogical DesignImplementation QualityOutcome AssessmentResource Provision Literature Review (Explicit Approach)

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Curriculum Design: Course design in compliance with the need from employers, past students, professor bodies Fitness for use Literature Review (Explicit Approach)

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Research Methodology and Findings Part Four

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Questionnaire On-site Interview Case Study Methodology

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Questionnaire On-site Interview Case Study Part 4.1 Questionnaire

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Questionnaire Design Objective: Understand the RATIONALITY of the course design from the students perspectives Qualitative Analysis Quantitative Analysis

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Questionnaire Design Qualitative BackgroundInternshipCareer PlanningCourse Design Quantitative Course Grading Rationality Index

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Questionnaire Design Google Doc questionnaire screenshot https://docs.google.com/forms/d/1yc_WMEdrSoGN_9aQC- 3Eb0PaDA0-A7yRckXuicmKsPQ/viewform https://docs.google.com/forms/d/1yc_WMEdrSoGN_9aQC- 3Eb0PaDA0-A7yRckXuicmKsPQ/viewform Grading questionnaire screenshot

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Source of Respondents Questionnaire For year 3 local students of old curriculum, we classify them in final year.

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Internship Experience 45 out of 55 students have previous internship experience

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Internship Experience

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Career Planning Year 3 & above: Not at all : 3 A little: 12

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Career Planning Do you think you need more career guidance? 49 out of 55 choose YES

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Course Design

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Course Selection Have you encountered the problem that the course you want to take is not open ? 45 out of 55 choose YES

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Course Evaluation 3 Most Useful courses voted by Students: FINA 3080 FINA 3010 FINA 4110, FINA 4370, FINA 4120 Reason: Basic concept + Foundation

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Course Evaluation 3 Most Useless Courses voted by Students: DSME 2050 MATH 2010 CSCI 1510/1530 Reason: Too theoretical+ Lack of Practicability

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Course Evaluation (Grading)

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Quantitative Analysis (Multi-variable Linear Regression) 1. Find the factors that affect Rationality 2. QUANTIFY the Rationality Index

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Regression Model Dependent Variable: Rationality Index= [0,2] Do you think the current design is beneficial for your career development? 0: Very Limited 1: Just Ok 2: Very much

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Regression Model ( Contd) X1: Adjusted-score for Practicability of knowledge learnt X2: Adjusted-score for Overall Course Satisfaction X3: Adjusted-score for Improved Skill-set

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Significant

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The 3 variables are significant

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Regression Model Y=0.955+ 0.417*X 1 + 0.281*X 2 + 0.198*X 3 Conclusion: 1.Significant 2.Practicability of the course content is the most important factor 3.E(Rationality Index) ~ 0.94

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Questionnai re On-site Interview Case Study Part 4.2 Interview

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Overview of Interviews Coverage - 6 interviewees 2 working graduates1 post-graduate 3 current final year students

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Background IntervieweeStatusCompany/University Interviewee AWorking at Top Hedge Fund Algorithm Trading Team Interviewee BWorking at Investment Bank Global Market Research Interviewee CCurrent Post- Graduate Majoring Econmoics in HKU

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Overview of Interviews Objective - To get a holistic and detailed picture of the curriculum from interviewees - To supplement whats not covered in the questionnaire Question Margin - What do they think of the curriculum with much part-time/full-time experience ? - What do they find out after graduation ?

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Opinions in Common About Employment Many graduated students get job in IBD, but few really work on Quantitative-related job Mathematics not very strong Employers always expect: Mathematical Modeling Programming Risk Management

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Opinions in Common FINA 3080 - Investment Analysis and Portfolio Management Not difficult Basic concept Frequently used FINA 4060 - China Finance Only opened once, but many students want to study the topic MATH 2010 - Advanced Calculus I Too theoretical, not much relevance to the reality FINA 4140 Computational Finance The course is closest one to the concept of Quantitative Finance About Courses

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Opinions in Common Suggestions: More case study, more project More quantitative

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Opinions on the Contrary Specific Courses Evaluation CSCIDSME 2050 Not really usefulNO USE AT ALL Recommend CSCI 1530 Java Programming No specific knowledge, but develop some skills Negative Positive

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Opinions on the Contrary Skills Gained Does QFIN curriculum give you enough skills for your career? Skills are not taught in university and theyre ought to be Skills are expected to be learnt during internship

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Opinions on the Contrary Course Flexibility What do you comment on the flexibility of QFIN course difficulty? Course Design is too flexible so that students capabilities are not guaranteed. Course Design is flexible to ensure a good-looking GPA.

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Conclusion of Interviews Pros of the curriculum: Solid foundation for accountancy, finance World-class Finance Trading Lab

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Conclusion of Interviews Cons of the curriculum: Lack of foundation in MATH Some courses not available Courses not inspiring Not market-oriented

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Interesting Comment from Interviewees Who is really doing Quantitative Finance

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Questionnaire On-site Interview Case Study Part 4.3 Case Study - Course Categories Quick Comparison among CUHK, HKUST, NUS, HKU

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Portion of Math-related Courses

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Portion of Finance-related Courses

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Some Courses Comparison CUHKNUSHKUSTHKU Linear Algebra MATH2510MA1101 MA2101 MATH 111MATH2101 Calculus MATH 2010MA1104 MATH 100MATH1211 Basic Probability STAT2001 STAT2006 ST2131 ST3131 ISOM 254STAT2601 STAT3603 Math Finance FINA 4160 Computational Finance MA3269 Mathematical Finance I MA4269 Mathematical Finance II MATH 362 Fundamentals of Mathematical Finance FINA3350 Mathematical Finance Final Project -QF4199 FINA 4810 FINA 4814 -

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Conclusion of Case Study CUHK, HKU, HKUST are basically the same in terms of MATH NUS is specially focusing on MATH CUHK provides a bit more finance-related courses Solid Foundation for Finance Knowledge CUHK and HKU dont have the final year project No enough chance for practice under professor's guidance

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Conclusion Part Five

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Conclusion Motivation Objective To assess/analyze the rationality of CUHK QFIN Curriculum Research Methodology Questionnaire Interview Case Study + + Work Study

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Findings & Suggestions AspectsAdvantagesProblemsSuggestions Career Planning No enough career guidance Provide more career inspiration and guidance Teaching Method Case study and presentation are well used No sufficient software teaching and real-time example Add software and real- time example teaching Course Content Low practicability, Low inspiration; Out-dated cases Improve practicability; Share real working situation; Use up-dated cases

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Findings & Suggestions AspectsAdvantagesProblemsSuggestions Course Selection N/AMany courses not available for enroll Open more courses with timely investigation Course Categories Finance courses are popular, providing solid foundation Math and Stat courses are too theoretical Improve practicability of Math and Stat courses Course Difficulty Flexible difficulty, provide good- looking GPA Cannot guarantee students' capability in quantitative finance Balance students' feedback and program quality Finance Trading Lab World-class, Bloomberg available for use No systematic teaching for Bloomberg Add stimulating practice using Bloomberg

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Limitation Relatively small sample size Cannot cover all relevant factors Lack of other universitys information for comparison

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Q&A Part Six

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