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Chemistry Research, Durham University
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Could I get into investment banking after completing my masters in pharmacy?

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Reply 20
Original post by momoneyme89
He will have to learn it sooner or later. Risk management is statistics. Portfolio theory is the core of Prop Trading in IBs.

Heck everyone should know Portfolio theory, you can manage your own assets than rather getting 0.1% from your bank account.

I manage £25K of my own money in the markets


You are to tell me you have done a mean-variance analysis of your portfolio that will get you £250 even at 10% return? How did you calibrate your variance-covariance matrix? Are you sure you did it well? How much time did it take you? Was it worth the effort?
Chemistry Research, Durham University
Durham University
Durham
Visit website
Original post by Trapz99
OP is talking about investment banking. That has literally nothing to do with managing money in the markets. Investment bankers help companies to raise capital (either through DCM or ECM) or merge or acquire other companies. He does not need to know statistics or portfolio theory for that.


There are many divisions to investment banking, ofcourse OP needs to know modern portfolio theory, it's the basics of finance. I should know, I have a masters in finance and econometrics.

What you are talking about is corporate finance, debt equity structuring. Raising capital is not hard, either apply for a loan or sell part of the company as equity.

Everyone needs to know statistics, he needs to know how to manage risk, but the stats he needs to know is basic. Nothing more than standard deviation, OP isn't doing a PhD in econometrics.

Back in the old days, IB did what you said, now they do more, they also market make
Reply 22
Original post by momoneyme89
There are many divisions to investment banking, ofcourse OP needs to know modern portfolio theory, it's the basics of finance. I should know, I have a masters in finance and econometrics.

What you are talking about is corporate finance, debt equity structuring. Raising capital is not hard, either apply for a loan or sell part of the company as equity.

Everyone needs to know statistics, he needs to know how to manage risk, but the stats he needs to know is basic. Nothing more than standard deviation, OP isn't doing a PhD in econometrics.

Back in the old days, IB did what you said, now they do more, they also market make


Except that risk management in finance is a load of *******s.
Original post by inhuman
You are to tell me you have done a mean-variance analysis of your portfolio that will get you £250 even at 10% return? How did you calibrate your variance-covariance matrix? Are you sure you did it well? How much time did it take you? Was it worth the effort?


Portfolio theory teaches you the benefit of diversification and how correlation of assets affects return, so you try to pick assets which are not correlated with each other.

My portfolio is during pretty well, up up £1600 in 5 weeks
Reply 24
Original post by momoneyme89
Portfolio theory teaches you the benefit of diversification and how correlation of assets affects return, so you try to pick assets which are not correlated with each other.

My portfolio is during pretty well, up up £1600 in 5 weeks


Then you don't need to know portfolio theory. Then you just need to look up diversification. It's not that hard of a concept.

And do tell more.
Original post by momoneyme89
There are many divisions to investment banking, ofcourse OP needs to know modern portfolio theory, it's the basics of finance. I should know, I have a masters in finance and econometrics.

What you are talking about is corporate finance, debt equity structuring. Raising capital is not hard, either apply for a loan or sell part of the company as equity.

Everyone needs to know statistics, he needs to know how to manage risk, but the stats he needs to know is basic. Nothing more than standard deviation, OP isn't doing a PhD in econometrics.

Back in the old days, IB did what you said, now they do more, they also market make

An investment banker does not market make. Traders do that. An investment banker also does not manage risk. Risk analysts do that.

An investment banker typically means that one works in the investment banking division of a bank, which purely focuses on M&A, DCM, ECM deals and coverage groups. Someone in that division does not need to know modern portfolio theory, risk management or statistics.
If you want to be bored, these are my holdings

Apple, Starbucks, Galliford Try, Legal and General, Berkeley Group Holdings, Greggs, Interserve, Paragon Group of Companies, H&M, Kotak India
Mid Cap Fund, Eros International Bonds
@Princepieman back me up plz the guy is spreading misinformation lol
Original post by Trapz99
An investment banker does not market make. Traders do that. An investment banker also does not manage risk. Risk analysts do that.

An investment banker typically means that one works in the investment banking division of a bank, which purely focuses on M&A, DCM, ECM deals and coverage groups. Someone in that division does not need to know modern portfolio theory, risk management or statistics.


Here learn....

https://www.youtube.com/watch?v=FTmNJAobXeg

OP wants to go into IB, he didn't say he wanted to do M&A stuff.

IB is not just what you said.
Original post by Trapz99
@Princepieman back me up plz the guy is spreading misinformation lol


Loooooooooooooool

Chin up, son
Original post by momoneyme89
Here learn....

https://www.youtube.com/watch?v=FTmNJAobXeg

OP wants to go into IB, he didn't say he wanted to do M&A stuff.

IB is not just what you said.


He doesn't need to know statistics or modern portfolio theory even if he wants to go into trading.
What did you get in your GCSE's if you dont mind me asking?

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