Finance and Economics MSc Personal Statement

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Published: 11th November 2021
Word count: 926 words
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A summer internship in money brokerage enabled me to see all the components in the financial markets come together. My role was to act as an intermediary to negotiate sales of certificates of deposit (CD) between banks. This provoked my interests in seeing the applications of economic models in financial institutions in the real world. I want to study this course because it enables me to explore two interdisciplinary themes. It will allow me to combine their tools to grasp the theory and practice of financial markets and use econometrics to analyse data, which will prepare me for a career in the financial sector. I chose the MSc Finance and economics program because it is a distinctive learning experience only possible at LSE. I will be taught not only how to apply economics models, but also to understand the technical foundations underpinning these models, I will improve my ability to alter, amend, empirically test and adapt the models to new market environments. The tools and techniques I will learn from the courses are directly applicable to a wide range of real-world financial and other situations.

The research and teaching will enable me to examine financial markets through in-depth analysis based on financial and economic theory and statistical methods. I will learn about investments, asset pricing, derivatives and financial engineering through the coherent lens of financial economics. I can gain exposure to corporate and international finance, portfolio and risk management, as well as specialised modelling skills including programming in MATLAB.

Currently, I am working on a dissertation in behavioural economics which focuses on explaining the equity premium puzzle (EPP) using myopic loss aversion (MLA). This gave me a different perspective on when and why consumers behave as rational agents and how their decisions shape financial markets. In my dissertation, I also attempted to address the limitations in the use of standard utility theories to justify the EPP and that although the MLA is a more plausible approach however still has its limitations. I also investigated whether organizations exhibit MLA. Through this dissertation, I gained insight into the financial markets from an economic perspective. It provoked my interests in studying the technicalities of finance. The corporate finance module will give me more insight into the theories of finance and regulation. I will be able to explore how managers mitigate risk through utilising the financial instruments.

I strongly believe that my academic background and personal qualities meet the demands of this challenging program. I have a solid foundation in quantitative skills and economic theory. During my undergraduate studies, I was able to score high firsts on all mathematical modules and the essay components of all the economics modules. I also take the initiative to immerse myself in mathematics. E.g. I practised my quantitative skills as a child through competing on Mathletics.com and became the top 100 Mathematicians in the world on Mathletics.com in 2009. I have also achieved 6/6 in mathematics on the Cambridge checkpoint examinations and 84% on a project that investigates the distance between planets in light years. This not only emphasizes my strengths in mathematics but also shows that I am able to carry out innovative research. I have gone beyond the curriculum to consolidate my understanding of mathematical theories through delivering a presentation in partnership with Winchester College on the proofs of irrationality using continuous functions. It also developed my public speaking skills through presenting complex ideas to peers in a clear and concise manner, which is a treasured quality of a business leader. Furthermore, I also achieved a Distinction in my Public Speaking diploma where I prepared 6 speeches with different settings and levels of formality. I also won First place in YCIS Chinese First Language Speech Competition 2013, both of which further highlights my strengths in public speaking. I have also progressed my communication skills through being a student ambassador taking on a leadership role through leading campus tours and answering queries students may have, this increased my confidence in speaking various languages e.g. Mandarin and Cantonese.

My internship involved collecting the data of CDs from financial firms and quoting daily prices to our clients. This not only significantly improved my computer skills through creating spreadsheets, updating price changes and sending it to a vast amount of clients in a short period of time but also enhance my ability to negotiate with others. I convinced many clients to invest in CDs that they initially could not agree on the price on and I personalized the client’s experience by talking to them independently and maintaining frequent contact to follow up on transactions and problems faced. This improved my negotiation skills. I collaborated with colleagues to promote new financial products, which enhanced my teamwork skills. I recorded all transactions made in the CD group and calculated the commission gains for each worker. This enabled me to put theories into action.

To best utilise my education with LSE, I have a number of potential employers that I plan to apply to upon graduation. These include the World Bank, the International Monetary Fund, European Investment Bank, Goldman Sachs and JP Morgan. It is heartening to carry on with my intense passion for the interdisciplinary subjects in business at the graduate level with guidance from some of the world’s most leading scholars. This, together with my eagerness to learn from the bottom of my heart, will certainly have a positive impact on me to succeed with my goals to become a true professional in the future and to make the world a better place to live in.

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Why this example works — strengths and ways to improve

Your statement has genuine raw material: a brokerage internship and a dissertation on the equity premium puzzle and myopic loss aversion. However, too much space restates the course description, childhood achievements dilute postgraduate evidence, and reflection often stops at generic skill claims. Tightening around your dissertation findings and specific internship insights would make your case far more persuasive and personal.

Subject motivation

This provoked my interests in seeing the applications of economic models

The internship is a credible starting point, but you never name which economic model or market behaviour you saw in action. Explaining one concrete observation, such as how CD pricing reflected rates or liquidity, would turn a stated interest into a demonstrated motivation.

Academic preparation

score high firsts on all mathematical modules

This is relevant evidence, but naming modules, such as econometrics, probability or optimisation, would show preparation for MATLAB and asset pricing. Childhood Mathletics and Checkpoint results weaken the postgraduate case; your undergraduate record should carry the argument.

Evidence and reflection

although the MLA is a more plausible approach however still has its limitations

This is your most promising academic material, yet you do not say what the limitations are or what you found about organisations. One sentence on your method and a specific conclusion would show analytical thinking far better than saying it gave you insight.

Relevant experience

I recorded all transactions made in the CD group and calculated the commission gains

The duties are concrete, but each ends in a generic claim, such as improving negotiation or teamwork skills. Reflect on what you learned about how interbank markets function, price disagreements, or client behaviour, as that connects directly to the course.

Credibility and voice

my eagerness to learn from the bottom of my heart

Phrases like this, along with 'make the world a better place' and 'intense passion', sound inflated and generic. Listing the World Bank alongside Goldman Sachs without explaining what links them suggests the career goals are not yet focused. A plainer, specific voice would read as more convincing.

Structure and format

It will allow me to combine their tools to grasp the theory

The opening and second paragraph largely paraphrase programme content and leave the internship split across distant sections. The public-speaking paragraph is long relative to its relevance. Grouping the internship together and putting the dissertation earlier would make the argument clearer.

What you’ve done well

Your dissertation on explaining the equity premium puzzle through myopic loss aversion is a substantive, directly relevant research topic for financial economics.
Your internship gives you real exposure to certificate of deposit trading and client pricing, which is a concrete practical link to the programme.

How this draft could improve

Replace the course-description paragraphs with a short account of your dissertation method, findings and the open question it leaves you wanting to study.
Cut the childhood and school-level achievements, using that space to name the undergraduate quantitative modules that prepare you for econometrics and programming.
Turn each internship task into a market insight rather than a skill label, and narrow your career aim to one coherent direction.

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