How to get onto the Baruch MFE and earn $325k. By the program head
If you're looking for a cost-effective route into an income-maximising career in financial services, the Masters in Financial Engineering (MFE) run by Baruch College in New York has long been a contender. Costing only $45k and leading to median compensation of $225k in the first year after graduation, and to a median of $325k five years later, the Baruch MFE is a proven route into some of the highest paying jobs in hedge funds.
The gatekeeper to the riches made possible through the course is Dan Stefanica, its mild-mannered director. Stefanica has been running Baruch MFE since it was set up in 2002. He tells us the social mobility enabled by the course gives him a "huge sense of purpose." Whereas other MFE courses cater to students from upper middle class families, 40% of Baruch's students come from families with an annual income of $40k or less. "Our students have tough lives but they know that if they're successful their lives will change," says Stefanica. "It's a remarkable atmosphere at Baruch. All departments here really care a lot about the students."
Because he cares about his students and wants to improve more lives, Stefanica wants more people on the Baruch MFE course. He doesn't lack applicants: 500-600 people a year apply for the Baruch MFE, but in a normal year, the school only enrols between 20 and 30 students. The acceptance rate is therefore less than 5%. Most applicants simply aren't good enough. "We admit everyone who’s qualified," says Stefanica. "We don’t have a stable number of seats."
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In order to increase the number of qualified candidates who come through, Stefanica has taken preemptive action. He's written a book* on the questions that are asked during MFE admissions interviews and how to solve them. The intention is to help students gain a deep understanding of the technical issues, says Stefanica. It's not intended to encourage rote learning. "It will help you to answer questions, not by memorizing but by understanding why a problem is approached in a particular way," he says. "The most important question that you need to ask and answer is "Why?"
We've posted four sample questions from the book below. If you can answer them, maybe Stefanica will set you on the right path by giving you access to the course. If you can't answer them, maybe you need to buy his book.
The same questions will not be asked every year in Baruch MFE interviews, says Stefanica. But the same sort of questions will. "The book will provide information to everyone," he says. "It's a kind of democratization." Even if you don't get onto the MFE, it will be worthwhile: Stefanica says similar questions are asked in quant intern interviews.
Sample MFE interview questions:
*Admissions IQ: MFE Interview Edition (Pocket Book Guides for Quant Interviews)
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