Oxford MFE Interview preparations

These are all the hard work I've put in for preparing for the Oxford Telephone Interview - staying back at office until 10pm almost everyday for the past two weeks. As I've mentioned in my previous post. I didn't use much of the stuff I prepared. Therefore, I decided to post this in my blog so that all my efforts are not wasted(at least someone will get to read this) - just to let myself feel better. lol. as you can see, I even typed out the introduction line so you can guess how nervous am I at that point of time. My response might sound a bit "arrogant" depending how you see it, I am just trying to "sell" myself to them.

Hello, Good morning can I speak to Dr. Mirela Predescu. I’m Zhemin Chong calling from Malaysia for the Oxford MFE interview.

Why Finance?
This answer could probably be dated back when I just finished my hish school. I got to read the book “Rich dad, Poor dad” by Robert Kiyosaki and this ignited my interest to be financially literate which is very much stressed by the author in the book. The idea of letting money work for you instead of working for money really fascinates me and I started to be interested in financial related matters. At that point of time, my parents were encouraging me to become an accountant. I accepted their advice and switch from science stream to the art streams (business). Throughout the years in my university, I participated in the Investment Game. In the game, we simulate the trading of shares and we are given a budget of RM100k. The person who maximizes his portfolio will win the game. Since then I started to be very interested in stock markets. I am keen on knowing all the valuation theories for me to choose the correct counter to invest. I’m also interested in the value investing proposed by Warren Buffett(to be more precise, it should be Benjamin Graham). Since then, I’ve read up a lot of articles regarding Value Investing and Warren Buffett. In the finance papers in my degree course, I was taught how to apply the formula(for eg black scholes) to value options or share. However, I am a person which could not accept things blindly, I need a solid proof/derivation before accepting any formulas. This is one of the reasons I want to do a MFE. I also believe that Oxford is the right place which could fulfill my inquisitive character.

Why Oxford? Why MFE?

First, oxford has a fantastic brand name and it’s a great thing to be associated with oxford. When anyone mentioned Oxford, we would expect a tough and rigorous academic syllabus. Besides that Oxford is an old university with rich traditions. It also has a huge alumnus across the world. I am aware that this is a relatively new course compared to other Finance courses which are well established. However I am attracted to the theoretical nature of the program which could meet my needs and interest. I’m very into the derivations of formula and the financial theories. This program is meant to offer the type of curriculum that I’m searching for. This course would provide me with a thorough understanding of all different aspects of finance. It will help me to get the broader picture. Most important thing is this program could help me develop critical and analytical skills that is very much required to earn a career in an Investment Bank. I also understand that this program requires significant quantitative skills which are clearly not in my profile. However I believe from my proven excellent academic track record I could succeed in the MFE program. I am willing to work hard and also endure the intense academic demands. Switching from a science background to accounting background after my high school is like climbing a hill; Switching from an accounting degree to a finance Masters is like climbing a mountain. I’ve conquered a hill; you should be convinced that I’m able to climb up the mountain. I’m absolutely optimistic in doing so! This is a very challenging and demanding course and I’m ready to take up the challenge.

Core Courses

Asset pricing

-Covers theory and practice of valuing claims due to uncertain cash flows.

-CAPM, Black sholes fourmula

-application of advanced statistical methods and practical to work with real world data

Corporate Finance

-study financing, valuation and corporate governance of firms.

- learn fundamental principles of financial accounting, valuation of firms assets

- key components of firms financial decisions, issues of securities, debt and dividend policy

Financial Econometrics

-Empirical modeling and testing in finance

-Understand crucial concepts like risk, evidence and prediction

Microeconomics

-How financial and commercial frameworks and conditions impact individual situations and business units

-Market and firm analysis, game theory, incentive theory and auctions.

Electives courses
Besides that in the last term I would be able to choose 5 elective - a range of applied finance and more theoretical topics looks very promising for me to land a job in an investment bank. I am also able to specialize in the area I want to.

Choice of elective courses :

Arbitrage opportunities and hedge funds – I’m very keen on learning more on arbitrage and capitalizing arbitrage opportunities. Working as a hedge fund manager and investor I will need the skills to learn on what area to invest. Eg, arbitrage, long short equity

Corporate valuation – learn how to make good financial and investment decisions. I’m eager to apply what I learnt in valuation into practice.

Fixed income and derivatives – Will understand the properties of financial instruments which relates to risk management, portfolio diversification, systematic risk, financial fragility and contagion

Trading and market microstructure – to experience a real life experience of trading in simulated financial markets.

Corporate strategy and market competition – use the tools of microeconomics, game theory, and econometrics to model and understand the strategic interaction of firms

Career goals

As mentioned in my personal statement I planned to secure a job in an Investment Bank. I would like to work in the front office in the investment management sector where I could manage various securities (shares, bond etc) and other assets (e.g. real estate), to meet specified investment goals for the benefit of the investors. I find the idea of investing/managing funds and making the portfolio grows fascinating. It is a pleasure to see wealth accumulates over the time. After spending a few years in UK, I would like to return to my home country to start my own business. As for a start, my company will be a financial advisory firm. For your information, most of Malaysians are not concerned about money matters and they tend to overspend. From the statistics issued by Finance ministry, the number of Malaysian who declared bankruptcy had surged 47 % between 2001 and 2004 to figures more than double during the 1997 Asian Financial Crisis. 11% of the people became bankrupt because of non-payment of credit card debt while 8% of the bankrupts were between the ages of 20 and 30. Research showed a direct link between credit card use and the bankruptcy rate among those aged between 20 and 30. Therefore I believe there is a great demand for Malaysians to seek for personal financial advice. Eventually when my company grows bigger, I will then target businesses for financial advisory and I will turn my company into an investment firm. I am also keen on setting up my own trust fund and become a fund manager.

Why you should choose me?

Since I was in primary school I started questioning a lot on things that I do not understand. I always notice/focus on minor problem which is regarded as insignificant in problem solving by my peers and being regarded as trouble maker. Despite this, I have faith in myself that I’m an exotic individual that could achieve big things in life. However things do not turn out as I expected where I miss out by two subjects to score straight A1s in my high school exam and ended up an above average result in my previous degree. However, making way into the MFE program will mark a milestone in my life, both academically and non-academically. I believe getting into MFE will give me a great boost to dream big and achieve great things in my life. Though I have no prior work experience and a non-finance related degree, I believe my current degree in accounting and the few months experience in PwC will help me a lot in grasping the fundamental in the course. Besides I am also confident that I will contribute actively to the class by giving opinions on a very different point of view as an accounting graduate. This will definitely make the class profile of MFE more diversified.

Questions to ask

How is oxford going to position MFE among all others finance courses.

How is the job placement for last year MFE students. Did it improved?