The types of projects that online finance degree students complete are similar to those in traditional degree programs. Below introduces some of the most common types of capstone assignments that students complete.
Resource: Top 10 Best Online Master of Finance Degree Programs 2014
New Investment Options
A sample project may include researching name brand companies who are preparing to unveil initial public offerings. The project may commence with comparative analyzing equity research reports. Afterwards, the student may actually visit the target organization in order to meet with staff and members of the internal equity research team. The student then conducts their research while occasionally touching base with their professor and a representative of the organization. At the conclusion, the student submits their report with their own independent assessment. Then again, another student may develop a set of proposed structured CDs for a target origination that is designed to yield higher interest rates. The performance will depend on underlying assets such as stock or currency indexes. Instead of turning in a final report, the student may present a proposed product and investment model to the organization.
Credit Risk Assessments
A credit risk assessment that is submitted to a bank is a valuable project that allows students to apply risk management and derivatives techniques. The student may use standard models, such as the Black-Scholes-Merton (BSM) Model, to assess the associated credit risks and neutral probabilities of prospective private loans. This type of project is an excellent opportunity for students to expand their analytical abilities and advanced Excel modeling skills. Learning to communicate and present factual financial data to banking professionals is very beneficial. Students will be expected to observe credit risk analysts at their daily job while asking questions and learning about the industry. Not only does this project produce valuable deliverables for the bank, but students get special networking opportunities and hands-on experience in the real world of banking.
Mortgage Risks & Benefits
Students may also take on a project that reviews the new obligatory regulations of the Dodd Frank Act. This concerns new mortgages that require consumers to comply with the Qualified Mortgage rules. It also concerns what financial risks will incur if organizations accept collateral that does not meet with the official Qualified Mortgage rules. Students will use standard risk models to analyze individual mortgage applications. On the other hand, this project may involve an in-depth assessment of mortgage companies and how they meet the needs of their clients. In order to contrast organizations against each other, the student may analyze and grade fixed- and floating-rate products and the derivative maturities products to assess interest rate risk levels. They student could also evaluate the level of commitment that the mortgage company has to community investment and rural economic development.
One of the more popular projects for online finance degree students is an analysis of banking profitability management. Because economic hardships are usually blamed on banks, their profitability is being reduced under newly released draconian regulations that limit banks to being financial public utilities. As a result, non-traditional financial entities struggle to continue providing quality and customer service while making a profit. A good project would be to suggest solutions for maintaining and managing profitability.
