Success is a universal goal, yet its definition is personal for every individual. To me, success is waking up every morning and doing something that l believe in, that l am good at, something l love to do, and can hardly wait to get at it everyday. I am hereby seeking for admission in your institution to study financial engineering. I have a vast financial knowledge gained at my previous institution in which I was undertaking a degree in Financial Management. While in college, I developed an enviable interest on how various financial models including decision trees, simulation models, sensitivity and scenario analysis.
Financial engineering being a mathematical model of applying theoretical financial management systems will help me in the manipulation of financial data using certain models and the correct interpretation of its results. This course will also assist me in making decision for the organizations I’ll be working for in my future career. These decisions include linear programming where the computer system provides a solution in computer form regarding the amount of two or more products to be produced to maximize profits; sensitivity analysis also referred to as “what if” analysis which is a behavioral approach that uses a number of possible values for a given variable to asses its impact on the firm’s decision criteria. Shareholder’s wealth maximization greatly depends on this phenomenon of financial engineering by experts / financial managers in making viable investment decisions, financing decisions etc. It is also used in simulation for predicting of results and in the banking industry.
I do hope that after completion of the programme, I will be able to apply that knowledge in solving the above problems geared towards reducing the financial financial risk of the firm. This is especially when evaluating appropriate financing methods where various financial instruments are used – preference shares, equity, debentures (loan stocks) etc. Financial engineering is then applied in ascertaining the riskness associated with each of the financial instruments. This is done through financial ratio analysis and also through graphical representations using both the computer and financial data.
I look forward to your positive response toward my admission in your institution to study financial engineering and I will be grateful to achieve my academic goal I have desired to achieve for years.