What types of projects do financial engineering students complete? This multidisciplinary field that focuses on mathematical solutions to problems in the finance industry is considered key to portfolio value creation. That means that students in this field must demonstrate their understanding of the field prior to graduation; for this, there are several options for capstone assignments, including the ones listed below.
Resource: 25 Great Master of Financial Engineering Programs
Financial Technology
One common project in this field centers on financial technology, which is a cornerstone of this kind of engineering. These assignments generally require a student analyze a current IT solution for a real company and then create a planning process as a solution. The issues covered in this type of project centers mostly on contracts, but can also find its way into derivative and futures reports. Other projects in this area can include building a solution to financial technology issues by using telecommunications and artificial intelligence, which is then delivered to a real company as a case study.
Economics
A capstone project based on economics is also popular among students. This project focuses on research and often includes correlations between online and traditional economic models, market efficiency factors and the role that this kind of engineering has on that, as well as theoretical analysis on a variety of new technologies that are making their way to the mainstream finance market. Research papers and theses are delivered to the program mentor and may or may not be defended by the student. In some cases, research papers serve both as a capstone project and that student’s first publication into the realm of the finance academic community.
Finance Tools and Instruments
Finance tools and instruments are a large part of the finance industry; these include both traditional and emerging tools that help steer finance into the future. These projects generally include an analysis of existing tools and how the tools are either efficient or outdated in the current financial climate; an alternate analysis may focus specifically on valuation instruments that are used to measure the health of various financial markets. Another possible project includes a case study of a company or firm, focusing on decision-making tools that lead that entity to either make an acquisition, merge with another company, or help focus their long-term financing options.
Risk and Financial Management
A student interested in financial risk may choose to do an analysis paper on risk and financial management; this project could focus on one company in particular in the form of a case study or analyze the macro view of a specific financial market or the market in a country. This is an incredible project choice for students focusing on financial engineering because they would use statistical software that is available in their school’s financial laboratory in order to complete their analysis in order to identify and then solve a problem that may exist in the area their project is about.
There is no way around using mathematical concepts and methods in the finance world; the two go hand in hand. A student who understands this and is aware that engineering can be a benefit to this industry will go far in their careers. With this short overview of what types of projects do financial engineering students complete, students will have a better idea of what they can expect from the capstone project they need to complete in order to graduate with their degree.
