"One of the things that I love about MIT Sloan is that it does a good job of integrating with the rest of MIT."
Finance Research Practicum & Proseminars
The Finance Research PracticumTM and Proseminars are graduate-level finance elective courses in which students work in teams on projects proposed by external sponsors. The goal is to provide students with an outstanding opportunity to work with leading industry practitioners on important business problems, while helping them bridge the gap between theory and practice, and introducing them to the broader financial community.
Finance Research PracticumTM Process
The course is full-time during the month of January and includes some preparation and follow-up before and after the fulltime experience. The projects address real business problems and involve the use of one or more advanced technical skills, including financial econometrics, simulation, derivatives valuation, optimization, and related software and programming languages.
Finance Research PracticumTM Opportunities
Example projects have included: developing a model for valuating and hedging variable annuity guarantees; building a prototype for a model for valuing and hedging Brazil interest-rate options; creating an agent-based model of the stock market that generates endogenous volatility; and analyzing the history of commercialization of university-based research in the Boston area and identify common attributes of successful ventures.
Proseminars offer students an outstanding opportunity to work with leading industry practitioners on authentic industry problems, help students bridge the gap between theory and practice, and introduce them to the broader financial community. Students work in teams to tackle problems posed by company sponsors and present findings to leading experts in the finance industry and to classmates.
- Provide investment banking advice to a private equity-controlled chemical company, including valuation, analysis, and exit strategies.
- Analyze the cost of trading foreign exchange for a major New York-based asset management firm.
- Construct a rainy day fund that will perform well when equity prices are falling, volatility in increasing, and credit spreads are widening for a significant Boston-based hedge fund.
- Give recommendations on raising capital for a rapidly growing private company.
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"After we gave our recommendations, the great part was that the very next day the CEO was in the boardroom implementing them with his top vice presidents."
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“These companies are really excited to work with MIT students.They reach out to the community to set up these projects and are great to work with. They give us access to all their resources and are very open to us.”
“We’re very interdisciplinary. Among the faculty in the group are an economist, a political scientist, a sociologist, and an industrial relations specialist. We’ve always made a big effort to be open to a variety of perspectives, but also to go beyond being open to them, to want to bring them in, because it makes for a richer environment.”
“For 35 years, we’ve been studying how companies get value from information. … We try to help organizations take a more holistic view of what they are trying to do.”
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“It was really rewarding that they wanted to know what we thought. We left there being fairly certain that they will do some of the things that we suggested.”
“Technology interests me because it is the mechanism by which we can improve our lives. It also can have unintended consequences, which is why it is important to study its adoption and diffusion through the market.”