Students majoring in economics can now work on independent study projects sponsored by major financial companies, and early indications show enthusiasm on both sides for the programs.
Four students majoring in economics are currently enrolled in sponsored independent studies this semester. Two students are working on an option-pricing program backed by Bank of America and two others are analyzing real-world mortgage data supplied by Lazard Asset Management.
Both programs premiered this semester, and Emma Rasiel, director of undergraduate studies and assistant professor of the practice in economics, said she hopes the program will continue in the future.
"If there are projects out there and the banks know they can come to Duke and get them overseen by a faculty member who has experience, then there may be many more of these to come," Rasiel said.
Rasiel, a former executive director at Goldman Sachs, will grade students at the end of the semester. Grades will be based on students' performances, the quality of the models and conclusions they provide and the content of presentations they make to the firms at the end of the semester.
Students are not being compensated for their work. Lazard and Bank of America funds will go to the economics department.
Rasiel said she worked with the Global Capital Markets Center at the Fuqua School of Business to provide opportunities for economics majors to gain real-world banking experience while earning credit for an independent study.
Richard Prager, global head of commodities for Bank of America and a member of the GCMC advisory board, said he is excited about the company sponsoring independent study programs for Duke undergraduates.
"[It's a] win-win situation... where Duke stays close to the markets, Dr. Rasiel stays close to the markets and we create opportunities for some very talented undergraduates," said Prager, Trinity '81.
He said the University, with its intellectual talent and close proximity to the company's Charlotte headquarters, is one of his company's top recruiting schools.
"We hope this is the beginning of many projects we're going to do with Dr. Rasiel and Bank of America," Prager added.
Rasiel said one of the goals is to help juniors differentiate themselves as they look for jobs and internships.
Tasha Bollerslev, a junior currently interviewing for a summer internship in the financial industry, said she first heard about the sponsored programs from an e-mail Rasiel sent to students who had taken her course in financial markets and investment.
Michael Kuritzky, a junior working alongside Bollerslev on the options pricing independent study for Bank of America, said he felt the program would give him a competitive advantage during the internship and job-hunting processes by increasing his technical understanding of financial markets. "It exposes undergraduates to real-world banking in a way that you wouldn't normally get with an undergraduate liberal arts education," he said, adding that he hopes the experience will help him make the transition from college into the financial industry.
Rasiel said that the idea for sponsored independent studies arose from the success of last semester's financial markets seminar, which was sponsored by Deutsche Bank.
She said another pair of economics majors are being paid to work on a research project for Bank of America, which is not involved enough to be awarded elective credit through the economics department.
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