“For me, this degree has not only been academically fulfilling, but it has also helped me in my career goals by opening doors that would have never been available otherwise.”
Finance Research Practicum
Practice finance with leading industry professionals
The Finance Research PracticumSM is a graduate-level finance elective course in which students work in teams of three on projects proposed by external sponsor companies. Our 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.
The course is full-time during the month of January and includes some preparation and follow-up before and after the full-time experience. Depending on the sponsoring company and location, students will work on-site and off-site.
Projects address real business problems. Most involve the use of one or more advanced technical skills, including financial econometrics, simulation, derivatives valuation, optimization, and related software and programming languages.
Sample projects include:
1) Model development and evaluation to:
- Recommend whether a pension fund should conduct “tail risk hedging.”
- Help an endowment decide how much to allocate to an inflation swap that takes into account: the preferences of the investor; the risk-and-return characteristics of the swap; and the need to set aside and manage collateral.
- Value and hedge variable annuity guarantees amd Brazilian interest-rate options.
- Develop and back-test an equity trading strategy.
2) Create an agent-based model of the stock market that generates endogenous volatility; use this model to propose recommendations for how traditional portfolio construction methodology should be modified to account for endogenous risk.
3) Analyze the history of commercialization of university-based research in the Boston area and identify common attributes of successful ventures.
“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.”
"The classroom itself is filled with so much collective brain power . . . it's obvious that I'm caught up in a room full of 124 of the brightest, most curious people from around the world."
“You could talk about watershed management and conservation of energy all you want. But until you put numbers to it and financial analysis to it, you’re not going to get much done. I came to business school to speak that language, speak with people in terms of numbers, financial numbers so that I can get projects done.”
"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."
“The conditions in the neighborhoods we were visiting were different than what we realized before getting there. Beyond that, what was surprising was that there weren’t surprises!”
“I love being in a place that is such a nexus of people and ideas — people coming to learn something new and to define themselves. Being a part of that process is a real honor and a real gift.”
“Our mission, along with the mission of MIT Sloan, is to both develop leaders who make a difference in the world, and also to make a contribution to thinking about the topic of leadership.”
“Because of the diversity of our backgrounds, when we hit the ground in Tanzania it almost was a natural play where different people assume different roles.”
“One of the reasons I came to Sloan was because I wanted to be at a top MBA institution worldwide. But I also wanted access to working with the latest innovations and the highest technology that was coming out of the MIT labs.”
“[The India Lab] program is one of the reasons I came to Sloan. ... The hands-on learning that MIT offers was a huge differentiator.”
“At MIT Sloan you have a lot of opportunities to explore entrepreneurship. Especially in a place like Kampala where you have a lot of development, entrepreneurship can be very exciting.”
“I knew about American business, but not enough about what’s really become a global economy. … You can read about it all you want, but there’s no substitute for being there and seeing the context and seeing how completely different these [other countries] are.”
“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.”
“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.”
“I can honestly say that when I was planning on coming to business school I never thought that witnessing the birth of a child would be included in the education. It was definitely an experience.”
“As for the faculty, you'll quickly find that your professors – whether Nobel laureates or past presidents of the American Finance Association – are as passionate about teaching as you are about learning from them. MIT Sloan finance professors see you as their partners in shaping the future of finance.”