Hello:I would like to talk about this; just informative and for the fun of it. The base is: a young person fresh out of school with an technical undergrad (ie, physics, math engineering). Let's say starting salary is: $60K (2010). How much can this person add if to become CFA? If become FRM, etc etc..do a PhD? You got the idea...I hope it get fun.

what kind of time frame are you talking about? if you're talking about over a career, the phd could add millions.

Of course one must factor risk into such a model...There is a reasonably strong correlation between risk and return in these options. A PhD will on average earn more than the others, but there are a lot more things to go wrong.Also, as I say over and over again your spot price is largely irrelevant, it is the area under the curve.

there's also the issue of the time a qualification takes and the lost income and work experience during that time:if as in some cases they hire masters and PhDs do the same jobs, a situation can occur where 2 students start grad school at the same time, both do masters and then one leaves to get a job and the other stays to do a PhD and then gets a job and finds the masters student is his supervisor (and the masters is earning more than the PhD) because he's got what, 3,4,5 years work experience already

ok,ok...so...the thread is open to improve the model...go ahed...fun fun..oh boy...

QuoteOriginally posted by: deepvaluewhat kind of time frame are you talking about? if you're talking about over a career, the phd could add millions.well..I really dont know...the idea is to develop the model here...but I guess that, ( if no correlation) the PhD marginal factor would explain that difference, Am I wrong?

Which MBA and which PhD ?A top 5 MBA will beat PhD hands down, over the career.

QuoteOriginally posted by: AbhiJWhich MBA and which PhD ?A top 5 MBA will beat PhD hands down, over the career.We are returning to the same minefield: Last time the question was what 10 PhD programs are top for quants (I insisted that there up to about 100 programs, and definitely more than 50, that may be more or less reasonably considered "top 10" only in US). Now it is what MBAs are top five.A side note: I am somewhat personally interested to know - my niece is going to complete an MBA this spring. She has no plans to became a quant, or enter the industry at all, however, so it is a just my curiosity.

QuoteOriginally posted by: AbhiJA top 5 MBA will beat PhD hands down, over the career. it all depends. somebody like bill gates or myron scholes would not benefit much from mba. if you're like george bush, however, the mba is more appropriate.

Guys focus, focus: quant hereThe idea is a linear regression or a time series model, perhaps? Not opinions...math..For example: Revenue (over 5 years) span = bo + b1 (mba) + b2 CFA etc; something like that....we have discussed the matter a lot, but we have not yet proposed a model...see? what do you think? sound like fun?

QuoteOriginally posted by: MaeloGuys focus, focus: quant hereThe idea is a linear regression or a time series model, perhaps? Not opinions...math..For example: Revenue (over 5 years) span = bo + b1 (mba) + b2 CFA etc; something like that....we have discussed the matter a lot, but we have not yet proposed a model...see? what do you think? sound like fun?I can suspect a lot of multicollinearity in such a model pal...

Multicollinearity, ah?yeap..that migth be right///it could be interesting, isnt it? It could mean , we migt even found out what course of action maximazes profit...should you get the CFA instead of an MBA? or should you get the CFA instead of MBA from certain schools?see?

you need to account for lifestyle, satisfaction, and happiness. and, of course, how do you account for your own idiosyncratic incompetence? you can't blame the degree if you have if you just can't perform well on the job.

I do not think so, deepvalue...if you try to do all in just one model...you wont get anything accomplished...lets do a simple thing 1st..then, we work on improve it...

I have the CFA, CPA, PRM, CAIA. and i would have to say that they dont matter much if at all.