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NEWS FROM THE FINANCIAL ECONOMICS INSTITUTE AT CLAREMONT MCKENNA COLLEGE

VOLUME 25, SPRING 2018

CMC PRESIDENT Hiram E. Chodosh Director’s Report FEI BOARD OF ADVISORS by Joshua Rosett Alan C. Heuberger ’96 (Co-Chair) BMGI THOUGH THE both interns and post-graduation John R. Shrewsberry ’87 (Co-Chair) & Company 2017-18 academic necessitated adjustments in the nature of the Gary Birkenbeuel ’80 year saw the Networking Trip. Third, Ernst & Young, LLP, Retired continuation of the the maturation of the Student Investment Baxter Brinkmann P’16 FEI’s main Fund and the value of the holdings J. Baxter Brinkmann International Corporation Alan M. Delsman ’68 programs, much of presented the opportunity to create the FEI Deutsche AG our focus this year Associates group with joint responsibilities Maureen Downey ’93 was on reviewing the to the SIF and the FEI. Fourth, the Russell Greenberg ’79 P’18 Joshua Rosett FEI’s mission and enormous advances in data availability and Altus Capital Partners Christopher D. Harris ’98 enhancing resources that fall within our computing power over the past 15 years put Damitz, Brooks, Nightingale, Turner & Morrisset sphere. We highlighted our successful great pressure on our data analysis Stella Ho ’97 endowment fund drive in the Fall 2017 environment at the FEI. LightBay Capital Newsletter , noting that the drive exceeded its In response to these factors and others, Benjamin Hunsaker ’06 Beach Point Capital Management goal and raised $560,488, including the Strategy Committee of the FEI Susan Matteson King ’85 P’18 $100,090 for the Terri Van Eaton fund. Advisory Board endorsed, and ultimately Foresters Financial This was matched with a gift from BMGI. the full Advisory Board approved, a new Christine Huk Mann ’87 Once again, thank you to all of those who mission statement reflecting what we & Co. James B. McElwee ’74 P’12 gave so generously. But in addition to believe are a good set of guiding principles Independent Venture Capitalist raising additional funds, we re-examined our for the FEI going forward. The new Paul H. Nathan ’80 mission statement and expanded our mission statement reads: Ledex Consulting Corporation resource offerings along lines we believe The mission of the Financial Economics Robert P. Thomas ’99 The George Kaiser Family Foundation will best benefit our constituents. Institute is to provide unique research, First, over the course of the year, the curricular and extracurricular opportunities FEI DIRECTOR Joshua Rosett Strategy Committee of the FEI Advisory engaging the in both the FEI ASSOCIATE DIRECTOR Board reviewed the mission statement of the theory and practice of financial economics. The George Batta FEI. The statements had not changed since FEI administers three programs directed at these ASSISTANT TO THE DIRECTORS the creation of the Institute in 2004, but the objectives. First, the FEI supports collaborative, Nancy A. Faust founding of the Robert Day School in the advanced student/faculty research in financial intervening time period and changes in the economics and overlapping disciplines. Second, In This Issue: broader environment in which we operate the FEI oversees the Financial Economics dictated that our focus needed to change. As Sequence, a unique curriculum grounded on PG 2: Director’s Report Continued examples, first the creation of the BA/MA rigorous quantitative courses in a liberal arts PG 3 –4: 2018 NYC Networking Trip program in finance impacted the Financial context, preparing students for career PG 5: The Financial Economics Institute: Economics Sequence, the networking trip, opportunities in finance. Third, the FEI sponsors A Student’s Perspective; Event and many other aspects of the FEI. Second, the change in timing of the job market for PG 6 –7: Spring 2018 Student Research See Director’s Report on page 2 Analysts PG 8 –11: Spring 2018 FES and BA/MA Oral Defense Presentations PG 11: FEI Affiliated Faculty Publications PG 12: Where will FEI Students Be Working? PG 12: FEI Summer RAs & 2018-2019 BMGI/Larson Fellows 2 THE FINANCIAL ECONOMICS INSTITUTE

Entrepreneurship and Innovation). We will and follow on with a case competition Director’s Report from page 1 continue to review and purchase access to managed by the SIF and sponsored by the activities for the broader community, including data sources we believe serve the mission of FEI. We are very excited by this oversight of the Student Investment Fund, the FEI. development. provision of databases, space and hardware for Second, over the past year, we have We also note our ongoing activities. multiple purposes, and support for conferences, expanded our computing resources with For Spring 2018, we once again had a great workshops, internships, networking trips and both new hardware and additional software. trip to New York for the Networking trip other events. Our new computers in the FEI Lab are high (see article in this Newsletter), again hosted In recognition of these principles, we end and geared for software packages such a very successful fourth annual BMGI Pitch are in the process of reviewing our main as Stata and the finance-related modules of event, sponsored the Student Investment activities with an eye to directing resources Matlab. Currently, we are in the process of Fund Finance Conference, sponsored an to where there will be the largest return for adding a server with much larger computing Athenaeum talk by Greg Mankiw, had 26 our constituents. Though we intend to capacity, approximately 10 times the student RAs working in the FEI Lab, continue working with the Strategy memory, CPU power, and storage of the collaborated with BMGI to choose 8 new Committee over the next couple of years to machines we can typically afford to put in BMGI/Michael Larson Asset Management review all aspects of the FEIs programming, the Lab. The server will allow multiple Fellows for 2018-19, and hired 5 students to we are already working through some of users to analyze much larger databases than work as RAs for Summer 2018. these areas. otherwise would be possible. This is a joint Finally, I want to take a moment to First, as noted in a previous report, we purchase with the Lowe Institute, and the thank two people. First, Nancy Faust has extensively reviewed our database offerings return on investment to both institutes is done a great job in her first year as over the past year. The number and very large. Administrative Assistant to the Directors. potential research value of databases has Third, we are working with the Robert She quickly learned and very well handled expanded dramatically during the past Day Scholars program, the Soll Center, and the myriad day-to-day activities as well as decade, and we believe it is important to the Student Investment Fund to enhance our many larger discrete annual events. She provide access to the highest valued among our training and networking offerings for had big shoes to fill following on from Terri these for both students and faculty. In part students. The continual shift of the job Van Eaton, and has so successfully done so. due to the cost, we have sought to find market to earlier timing within the college Finally, it is with a bit of sadness that I note partners to purchase databases where student’s career has necessitated an the departure of Colleen Bartlett, who is possible, including other institutes, the adjustment in our target audience for the leaving CMC to take another job. Many of Library, and the Robert Day School, and NYC Networking trip towards you know she was so instrumental in our the College. Over the past year, primarily Sophomores, and we are working with the successful fund-raising drive over the past through such collaborations, we have added RD Scholars program to add space for year. Colleen collaborated so well with the components of the Wind database on networking trips to other destinations, as Advancement Committee of the FEI economic series in China, both the well as finance training for students Advisory Board, pushed so hard to be sure Compustat Gobal and Point in Time associated with the FEI, the FES, and the we created a great plan, contacted so many databases (jointly purchased with the SIF. Similarly, we continue to work with the people, and doggedly followed up to get us Library), the Loan Connector add-on to the SIF to provide training to students across the finish line. I doubt we could have Library’s Thompson Financial Eikon interested in finance. The SIF has proposed accomplished what we did without her. I subscription, and the PitchBook database that for the 2018-19 academic year, they thank her and wish her all best luck in her (jointly purchased with the Center for will run a financial analysis training session new post. ▲ CLAREMONT MCKENNA COLLEGE 3

2018 New York City Networking Trip By Josh Dorman ’20 and Evelyn Chen ’20

THIS JANUARY, THE FINANCIAL recently published book, The Spider Network, careers in the industry. Economics Institute and the Robert Day and talked about how his passion for research On Wednesday, students started the day Scholars Program sponsored the 14th annual contributes to his role at the newspaper. by visiting ’s offices in Times New York City Networking Trek. In the On Monday evening, dozens of local Square. The event was hosted by Scott final week of winter break, three juniors and alumni joined the students, Student Ashby ’95 (Managing Director, Debt Capital fourteen sophomores traveled to NYC to Opportunity Center staff, and professors for Markets), Ben Kraus ’11 (Trader, Equity learn about the different opportunities a networking reception at Vandal, hosted by Derivatives), and Phil Crawford ’15 (Equity available in the financial services industry. Doug Peterson ’80 (President and CEO of Derivative Sales Trading Analyst). All three The trip offered the chance for students to S&P Global). The event allowed the trek’s alumni shared their experiences at Morgan connect with various alumni in both participants to meet and connect with Stanley, and students were able to gain a professional and casual settings. Michelle distinguished former CMC students and gain deep understanding of a bulge bracket Chamberlain (Dean for Student insight into a diverse array of careers. investment bank’s debt capital markets, sales Opportunities), Ursula Diamond (Director The following morning, the group and trading, and equity research divisions. of Student Opportunities), Freya (Lee) stopped at Millstein, a boutique restructuring Following the visit at Morgan Stanley, Hurtado (Assistant Director of Career firm. The visit was the group stopped at Moelis, a boutique Services), Eric Hughson (Chair of the Robert hosted by Sean Sakaguchi ’16 (Restructuring investment bank with offices next to Day School faculty), and George Batta Analyst) and Matt Scheidemann (Vice Rockefeller Center. The event was hosted by (Associate Professor of Economics and President). They each detailed examples of CMC parent Brian Callaci (Managing Associate Director of the FEI) accompanied particularly interesting past transactions, with Director), along with several analysts. Mr. the students on their visit. Sakaguchi providing insight into his Callaci described the rapid expansion the The first visit of the trek was to the New experience working with the government of firm has experienced in the past few years, York Stock Exchange. Joe Vencil ’85 (Senior Puerto Rico to help restructure their debt. and he emphasized the various growth Managing Director at Forte Securities) Josh Mendelsohn (Associate) and Olivier opportunities that Moelis offers to its arranged a private tour of the exchange floor Fioroni (Restructuring Analyst) later joined employees. where the group was able to witness the students for a brief networking session Next, students visited NERA Economic professional market makers in action. after the presentation. Consulting and were welcomed by Patrick Additionally, Joe’s colleague Chris Cornette, Next, the students visited UBS and were Conroy (Managing Director; Chair of the a trader with TD Prime Securities, led an hosted by Edward Conrad M’10 (Director, Securities and Finance Practice) and Lisa Fan insightful discussion on the exchange’s Private Funds Group) and Henry Goodman (Analyst). At NERA, students were able to history and explained how the rise of P’17 (Senior Vice-President, Private Wealth learn about opportunities for consulting with algorithmic trading has dramatically altered Management). Mr. Conrad discussed how an economics focus. Mr. Conroy gave an the daily work environment at the institution. the current high valuations of private overview of the company, and Ms. Fan talked Next, the group visited Deutsche Bank companies have posed new challenges for his about her previous experience working for a where they met with Alan Delsman ’68 team, while Mr. Goodman described how his bulge bracket investment bank and her (Managing Director), Steven group has been working to integrate transition to NERA. Limandibhratha ’14 (Investment Banking Environmental, Social, and Governance The last stop of Wednesday’s trip was at Analyst), and Tania Soloman ’17 (Credit Risk (ESG) values into some of their portfolio J.P. Morgan, hosted by Naina Mullick ’17 Analyst, MRMAC). The students all enjoyed strategies. (Sales and Trading Analyst), Merriel Foster a lunch presentation provided by Mr. The last visit of the day was to ’14 (Investment Banking Analyst), Skyler Delsman and his colleagues, and were able to Principles for Responsible Investment (PRI), Almquist (Investment Banking Analyst), Nicky Simpson (Investment Banking gain an incredible level of insight into the a division of the United Nations that seeks to Analyst) and Melanie White (Investment firm’s risk management division and a promote ESG investing. The students were Banking Associate). After the analysts number of employment opportunities with hosted by Melanie Paty ’15 (Policy Officer) described their daily duties and recent deals the firm. and Danielle Chesebrough (Senior Manager they worked on, the students were able to For the final stop of the day, the of Investor Relations), and engaged in a lively obtain a good sense of different roles and students stopped at . discussion of how the current political duties for sales and trading and investment The group was hosted by David Enrich ’01, climate has presented new challenges for the banking. While Ms. Foster talked about her who recently left to team at PRI. unique experience transferring from San serve as the Times’ s editor of the finance Tuesday evening was the first night of Francisco’s asset management division to section. Mr. Enrich led us on a private tour dine-arounds, where students—in groups of New York’s investment banking division, of the offices and introduced the group to two and three—met with accomplished Mr. Almquist offered his thoughts on two of his reporters, Jessica Silver-Greenberg alumni. The dinners presented a fantastic and Matt Goldstein, who discussed how they opportunity for attendees to learn about the researched new stories. He also discussed his different paths from CMC to distinguished See NYC Networking Trip on page 4 4 THE FINANCIAL ECONOMICS INSTITUTE

KKR, and his current involvement in a hedge Banking). Students acquired an in-depth NYC Networking Trip from page 3 fund. overview of different departments within the Bitcoin and blockchain. After the visit to Atalaya Capital, the bank, and also learned about the Later that night, several other groups of students headed to Jane Street Capital, a collaborative and supportive culture of students ventured out into the city for the technology-driven proprietary trading firm. Goldman Sachs. second evening of dine arounds, forging The visit was hosted by Kait O'Neil, a The 14th annual New York City valuable connections with alumni who hold recruiter at Jane Street, and two members of Networking Trip was a huge success. Many positions in the hedge fund industry, the quantitative trading team. Ms. O’Neil students spent Friday scheduling coffee chats investment banking, and asset management. gave the students a tour of Jane Street’s with professionals that they had spoken to Thursday morning began with a visit to offices, which includes a trading floor, gym, during the trip. Additionally, five CMC Atalaya Capital. Students were hosted by its and the dining hall. The topic of sophomores attended an informational founder, Ivan Zinn ’96, and by Brian Ford conversation revolved around the day-to-day interview hosted by Diego Cuenca ’07, the (Managing Director, Business Development tasks a trader in Jane Street is assigned, and founder of Kata Capital Partners. Mr. and Investor Relations) and Mia Genereux around the company’s unique culture. Cuenca was looking for summer interns, so (Associate). Mr. Zinn provided an For the final stop, students visited the meeting served as a wonderful introduction to private equity and the hedge Goldman Sachs and met with alumni in fund industry, as well as a detailed overview various divisions of the bank. The visit was opportunity for interested students to learn of his fund’s business model. Mr. Ford and hosted by Katherine Krey ’17 (Investment more about the company. Ms. Genereux shared their career experience Banking Analyst), Kaitlyn Kelleher ’17 A great deal of thanks must be given to after college and their respective paths to (Investment Banking Analyst), Max Mullen the Robert Day School of Economics and Atalaya. The event was later joined by Scott ’12 (Investment Banking Associate), David Finance, the Financial Economics Institute, Arnold ’09, who is currently a partner at Alvillar ’01 (Managing Director, Securities), the CMC Alumni and Parent Relations Sachem Head Capital Management. He Scott Sonneborn ’17 (Analyst, Engineering), Office, the CMC Alumni Association, the discussed his experience working as Brian Delaney ’16 (Investment Banking RDS Advisory Board, and all alumni hosts at investment banking analyst at a bulge bracket Analyst), Peter Rominger M’14 (Associate), the firms for their generous contributions bank, his time as a private equity associate at and Andrew Kaiser (Global Head, Private that made this trip possible. ▲

CMC Students visit Atalaya CLAREMONT MCKENNA COLLEGE 5

The Financial Economics Institute: A Student’s Perspective By Amberish “Rish” Chitre ’18

FOUNDED IN 2004, THE FINANCIAL graduate, I found it refreshing that students ultimately find an appropriate solution. Economics Institute (FEI) offers students an and faculty could work so closely together, Despite these obstacles, I learned a lot from unparalleled opportunity to learn and creating a more personalized learning working on the project, and that was the develop skills outside of the classroom. Some experience. Professor Helland has become a main purpose of it. of these skills include learning how to mentor and close confidant of mine and I The third main experience I had at the conduct academic research and using strongly believe this is attributable to FEI was being hired as the Bloomberg tutor financial, statistical, and programming working with him as a research analyst in my junior and senior year. I tutored software. The FEI also hires student tutors through the FEI. students interested in the software, students to help assist other students with learning During my sophomore year, I started to who needed it for a project, or seniors how to use the aforementioned software for develop a stronger interest in finance. After working on thesis. I developed a proficiency classes, work, or personal interest. In speaking with the director of the FEI, I was in Bloomberg as a result of my interest in addition, the FEI partners with the Robert given the opportunity to work on a project finance and time spent in the FEI trying Day Scholars Program (RDS) to sponsor a that had been in the pipeline for a few years. different functions on the terminal. It is a networking trip to New York City which This project involved creating custom stock tool I used during my summer internships in helps students become acquainted with firms indices to reflect the performance of specific investment banking and has been extremely in the financial services, consulting, and industries and sectors in California. The useful for class projects. I found that while technology industries. The Institute is also intent of this project was to create a Bloomberg might be more complicated than involved with putting on the annual benchmark of potential California specific other financial software, it is a treasure trove Claremont Finance Conference, sponsoring investments since these indices do not of information from research reports with guest speakers, and facilitating student currently exist. professional analyst projections to full- research through the BMGI/Michael Larson While I ran into some of the same fledged financial models integrating these Asset Management Fellowship Program. obstacles that others working on this project projections. I found these models useful for I became familiar with the FEI as a before me encountered, the project teaching students about financial modeling freshman after taking Professor Helland’s challenged me to chart solutions to by showing them how to compare their introductory economics class. He spoke to sophisticated problems. I was able to make model with a more complicated one from me about a project in the pharmaceuticals- some progress by making the necessary data Bloomberg. healthcare space that piqued my interest. I collection process more efficient. However, I I am extremely thankful for the also saw it as an opportunity to become ultimately concluded that creating custom opportunity I received my freshman year to involved early with the Institute. I worked for indices requires a programming background join the Financial Economics Institute. The Professor Helland during the second because of complications related to the faculty, staff, resources, and lab have been semester of my freshman year as well the timing of companies listing and delisting invaluable resources in my professional and following summer of 2015. His project from exchanges. This problem created large personal development. Claremont McKenna familiarized me with an industry that I had spikes and drops in data which made the College students continue to enjoy the many very little knowledge of prior to the project corresponding index unrepresentative of a benefits of the FEI and while I will miss this and materially improved my research and true benchmark. Despite these problems, I hallmark of my time at CMC, I look forward Excel skills. In addition to skills am confident that a new research analyst will to seeing how the Institute grows and development, as a recent high school enjoy working with this unique project and changes over time. ▲

Deutsche Bank Event

By Roma Forest ’19, 2017-2018 Chief Investment Officer, CMC’s Student Investment Fund

ON TUESDAY, APRIL 3, DEUTSCHE BANK’S students from around the 5Cs attended to learn more about Technology division hosted an information and networking how to obtain a summer internship in technology investment session before the Student Investment Fund’s general banking. Students described the event as helpful, engaging, meeting. Representatives from Deutsche included a Vice and informational. Blaze Li ’19 said, “I really appreciated the President of Internet Investment Banking and two first year Deutsche team taking time off to talk to us in person. I think analysts. Nick Lillie ’17, previous Chief Investment Officer that it was very helpful for the underclassmen especially with of the Student Investment Fund, works as a first year analyst recruiting happening so early and I think they did a good job in Deutsche’s Technology headquarters. He explaining the recruiting process to everyone.” The FEI and returned to campus to discuss his experiences since Student Investment Fund hope to hold more 5C finance graduating Claremont McKenna. Approximately thirty events together in the future. ▲ 6 THE FINANCIAL ECONOMICS INSTITUTE

Financial Economics Institute – Spring 2018 Student Research Analysts During the Spring 2018 semester, twenty-six student Research Analysts were hired to work at the FEI. The following is a list of students, their faculty advisors, and a brief description of the research projects in which they were involved or the type of tutoring they provided:

YASHNA BATRA ’20 worked with Professor Darren Filson on a Fernholz investigating cryptocurrencies to identify patters and trends project that involved collecting data on films to compare the financial that can lead to a profitable portfolio. performance of franchise films to non-franchise films. WILLIAM LI ’21 worked on a project with Professor Eric Helland that BHAVIKA BOORAGADDA ’18 worked with Professor Angela examined the additional safety effects of a mass litigation on Vossmeyer on a project involving systemic risk and network structure pharmaceuticals. In particular, the study, which examines over 30 years to trace the evolution (destruction and rebuilding) of the banking of litigation and adverse events data, can provide evidence on the correspondent network system during the Great Depression and make marginal value of litigation beyond the FDA’s safety regime. comparisons to the recent structure. FRANNY LIN ’19 worked with Professor Lincoln on a literature LINYUE (EVELYN) CHEN ’19 was the Excel tutor in the FEI Lab. review on how exchange rate fluctuations affect firm value. AMBERISH (RISH) CHITRE ’18 was the Bloomberg tutor in the FEI ANDREW LINDQUIST ’19 worked on a project with Professor Eric Lab. Helland that examines the additional safety effects of a mass litigation HA YUN (CHLOE) CHO ’19 worked with Professor Laura Grant on an on pharmaceuticals. In particular, he is analyzing over 30 years of energy conservation project, collecting the energy usage data of litigation, adverse events, and market data of FDA-approved drugs to households living in different military bases and the weather data in assess the marginal value of litigation beyond the FDA’s safety regime. order to further explore the energy usage habits. JENNIFER MACE ’19 worked with Professor Angela Vossmeyer on a ANTHONY DERAS ’20 worked on a project with Professor Hughson project that examines the impact of the Federal Reserve’s lending to that examines the effects of the individual discount rates set by each nonbank financial firms on economic recovery and growth – division of the Federal Reserve on the price of stocks during the Great specifically during the Great Depression. The deepening of the Depression era. financial crisis in 2008 led the Federal Reserve to revive a provision ROMA FOREST ’19 worked on a project with Professor Eric Helland found in Section 13(3) of the Federal Reserve Act to extend credit to that examined the additional safety effects of a mass litigation on nonbank financial firms for the first time since the 1930s, but has pharmaceuticals. In particular, the study, which examines over 30 years since been restricted. of litigation and adverse events data, can provide evidence on the NIKOLAOS PAPAGEORGIOU ’19 worked with Professor Darren marginal value of litigation beyond the FDA's safety regime. Filson on a project that involved collecting data on films to compare ZIJIN (LYDIA) FU ’18 worked with Professor Yun Liu of KGI to study the financial performance of franchise films to non-franchise films. the effect and characteristics of executive mobility. She is also doing TANISHA SHETH ’20 worked with Professor Angela Vossmeyer on a initial data analysis on the role of private directors on public corporate project involving systemic risk and network structure to trace the boards. evolution (destruction and rebuilding) of the banking correspondent XINYI (CINDY) HU ’19 worked with Professor Burdekin to explore network system during the Great Depression and make comparisons research opportunities on Chinese financial markets and the trading of to the recent structure. Chinese securities on offshore markets such as the Stock JOSEPH SCHEUER ’19 worked with Professor Eric Hughson on a Exchange. project collecting commercial paper and prime lending rates at JIAWEI (JACK) HUANG ’19 is the FEI website editor. He also worked different Federal Reserve branches prior to 1937. The information with Professor Joshua Rosett to build custom equity indices in will be used to assess the impact of monetary policy in different Bloomberg to investigate whether the performance of companies that regions on stock prices. are headquartered in a specific region reflect economic growth within YILIU (ELAINE) SONG ’18 worked with Professor Laura Grant on an that region. Analysis will be done by region and sector within energy conservation project, collecting the energy usage data of California. households living in different military bases and the weather data in YUTAO (JAMES) JIANG ’19 worked on a project with Professor Eric order to further explore the energy usage habits. Helland that examines the additional safety effects of a mass litigation YULANG (DANNY) WANG ’18 worked with Professor Julio Garin to on pharmaceuticals. In particular, he is analyzing over 30 years of replicate a paper on the effect of weather patterns in the Sub-Saharan litigation, adverse events, and market data of FDA-approved drugs to Africa countries versus other developing countries. He also worked assess the marginal value of litigation beyond the FDA’s safety regime. with Professor Laura Grant to refactor an Excel VBA program to KANISHK KAPUR ’18 worked on a project with Professor George easily generate meaningful data analyses for a local recycling plant Batta that is a structural estimation of accounting conservation. He administrator. Danny was also the Python tutor in the FEI Lab. was also the Capital IQ tutor in the FEI Lab.

ETHAN KURZ ’20 worked on a project with Professor Ricardo See FEI Spring Analyst s on page 7 CLAREMONT MCKENNA COLLEGE 7

IFS since 1989, as well as adding trade data between the U.S. and FEI Spring Analysts from page 6 China to determine the effect on the manufacture/non-manufacture SHUJIE (JOHN) XIA ’19 worked with Professor Julio Garin to trade with Mexico. replicate a paper on the effect of weather patterns in the Sub-Saharan MINGYU ZHENG ’20 worked with Professor Eric Helland on a project Africa countries versus other developing countries. that examined the additional safety effects of a mass litigation on YUJIA (EUGIA) YAO ’19 was the Stata tutor in the FEI Lab. pharmaceuticals. In particular, the study, which examines over 30 ZHENG (VERGIL) YING ’18 worked with Professor Sven Arndt and years of litigation and adverse events data, can provide evidence on the Dr. Alexander Huemer on a project that strives to establish a better marginal value of litigation beyond the FDA’s safety regime. She system to describe the trade pattern between the U.S. and Mexico. worked on developing a computer program that helps with relevant- He contributed by analyzing data compiled from USITC and IMF’s article identification. ▲ 8 THE FINANCIAL ECONOMICS INSTITUTE

Spring 2018 Financial Economics Sequence and BA/MA Oral Defense Presentations

THE FINANCIAL ECONOMICS profitability with the NPL purchase price to Minister Modi declared all Rs. 500 and Rs. Sequence and BA/MA in Finance are both provide a comparison. I find that interest 1000 notes in circulation, constituting 86% parts of the Robert Day School of rates and properties in New York are of the currency, to be illegal tender for Economics and Finance at Claremont statistically significant and negatively transactions. All the currency had to be McKenna College. These curricula are correlated with IRR. I find that delinquent deposited into bank accounts, and new notes designed for students interested in pursuing taxes have a slightly positive correlation with would be issued. Amounts deposited over careers in the financial sector and/or NPL Profitability. I also find that properties Rs. 250,000 (approx. USD 4000) would face subsequent graduate education in in good and fair condition are both tax scrutiny. The reasoning given for this economics, finance, and related fields. positively correlated with profitability, was to curb corruption, terrorism financing The Sequence has a rigorous relative to properties in poor or unknown and counterfeiting. This led to a scramble in quantitative focus and is designed to condition. Continued research in this area the economy, giving rise to many dubious complement majors in economics, and adjustments to the current NPL model schemes for evading the consequences of economics-accounting, and mathematics, as will allow for more accurate future model this policy. There was a significant loss in well as dual majors having an economics estimates.” income for people, however, they were component. In addition, the Sequence is willing to bear the short term pain, in the complementary to the coursework required CRYSTAL ANDERSON promise of medium to long term gain. for the undergraduate Robert Day Scholars The Effect of the Mandatory Adoption of Economists and political thinkers are divided Program. Under the auspices of the IFRS on Transparency for Investors on the merits of this matter. We tested the Financial Economics Institute (FEI), “This paper examines the effect of the varied effect of demonetization on the students complete the Sequence, which is mandatory adoption of the International Indian economy by examining the returns of noted on the transcript, thereby attesting to Financial Reporting Standards (IFRS) on the National Stock Exchange using the their solid understanding of the discipline. transparency for investors by measuring the Event Study Methodology in the immediate The BA/MA provides additional depth increase in earnings management during the period following demonetization. We found in finance that results in the awarding of the post-adoption period of IFRS. One sign of a statistically significant decline in Masters degree as well as the BA after the earnings management is current year consumption sectors. This was largely driven student completes their four years of study earnings being only slightly higher than the by decline in the ability to spend. Public at CMC. After completing prerequisite previous year’s earnings. An increase in Sector (PSBs) saw huge positive courses in economics, corporate finance and earnings management means a decrease in abnormal returns, while the Private Banks accounting, students complete 9 units of accounting quality and a decrease of recorded a lagged negative effect. This may Masters-level finance along with a seminar transparency for investors. By comparing be because the PSBs were riddled with in research methods, and they write and firms that mandatorily adopted IFRS to NPAs and in dire need of liquidity, or defend a finance thesis. Students admitted to similar benchmark firms in terms of strength because of the market’s differentiated the BA/MA program are Robert Day of legal enforcement, book-to-market ratios, perception of corruption within these Scholars. market values and net incomes, I am able to portfolios. We also find State-Owned The following is a list of the students run empirical regressions examining Companies to benefit from the who passed their presentations this semester variables of growth, equity issuance, announcement.” along with the titles of their senior theses leverage, debt issuance, turnover, size, cash and the Abstracts of their theses: flow, and time period in order to determine VICTOR BUNCE the effect of the adoption on IFRS on Does Growth Drive Valuation? An Analysis of TYLER WHEETLEY AMAYA earnings growth. After looking at 516 firms Percent Revenue Growth as a Multiples-Based Nonperforming Loans (NPLs): Asset Pricing from 20 countries for the years of 2002- Valuation Method in Public Mergers and and Determinants of Profitability 2007, I conclude that IFRS is decreasing Acquisitions “The purpose of this research is to analyze financial reporting quality and decreasing “Over the last twenty years, the worldwide the role of NPL loan characteristics in transparency for the investing public, and number of public explaining NPL profit outcomes compared therefore is not accomplishing its goal of has grown at a compound annual growth to the current pricing model for NPLs. I use bringing efficiency, accountability, and rate of 3.3%. In each transaction, acquirers the internal rate of return (IRR) of transparency to global financial markets.” and valuing parties including corporations, individual loans as my measure of investment banks, and buyout funds value profitability. I perform a standard linear ABHISHEK BIYANI target firms using a variety of regression of the determinants of NPL An Event Study to understand the Varied methodologies. This paper provides pricing characteristics, where IRR is the Response of Demonetization on the Indian evidence in favor of trailing twelve months dependent variable. I re-estimate the first Stock Exchange equation by replacing the NPL measure of “On the 8th of November, 2016, Prime See FES Theses on page 9 CLAREMONT MCKENNA COLLEGE 9

so, if the value generated is sustainable. preventing any definitive conclusions about FES Theses from page 8 Numerous studies of activist interventions shale companies’ possible role as a volatility- percent revenue growth as a multiple for prior to 2009 reveal significant stock price reducing swing producers.” valuation. Using the last twenty years of gains around the time of activist arrival and public mergers and acquisitions available on positive longer term buy-and-hold abnormal KANISHK KAPUR S&P’s Capital IQ, this paper finds that returns as well. The question remains, Is the Accruals Anomaly More Persistent in revenue growth is a consistently significant however, whether those trends have Firms With Weak Internal Controls? predictor of a target firm’s purchase continued as volume of transactions and “In 1996, Sloan identified the accruals multiple, measured as its enterprise value number of activists have increased post the anomaly, in which the negative relationship divided by revenue. Further, this paper finds recent global financial crisis. In this report, between the accruals component of current no evidence that trailing twelve months we perform an empirical analysis focused on earnings and subsequent stock returns can percent revenue growth is more significant a hand-collected dataset of 1,088 activist be exploited to generate excess returns. One during economic bubbles, and that the effect interventions from 1995-present. This would expect the accruals anomaly to is largely mitigated within the technology dataset includes all 13D filings, as well as dissipate and ultimately disappear as sector.” Under the Threshold activist campaigns. investors take advantage of the now-public First, we analyze stock price returns for this information. However, nearly two decades AMBERISH CHITRE group over short- and long-term periods and later, it persists as one of the most The Effect of the Change in Call Loan Rates find that activists continue to unlock prominent and contentious anomalies; its and Volatility on Stock Returns in 1929: An shareholder value in recent deals comparable magnitude of current and future excess Empirical Study into a Determinant of the to that of earlier ones. We then perform a returns still remain controversial. The main Great Depression proprietary regression to identify which reason for its persistence is that extreme “I investigate the effect of the change in call factors drive the most successful returns. accrual firms possess characteristics that are loan rates on stock returns during 1929. Call Such insights should prove informative for unappealing to most investors. These loan rates are the interest rates on borrowed investors employing an activist strategy and characteristics, which include insufficient funds to trade equity on a given exchange. It companies looking to manage areas of analyst coverage, high idiosyncratic volatility is estimated that 40% of stocks during this vulnerability.” and the presence of institutional constraints, period were bought on margin. After a price are generally more pronounced in firms with decline comes a margin call, followed by a ALEXANDER HUESING weak internal controls. This paper finds that forced sales of securities, which leads to Crude Oil Volatility during the Shale the accruals anomaly persists at a higher additional margin calls and future price Revolution magnitude in firms with weak internal declines. I regress daily excess returns on the “The purpose of this paper is to offer a controls. This higher magnitude of excess change in daily call loan rates during 1929. review of the history of oil in order to build returns survives the Fama-French five-factor In addition, I estimate volatility using an an understanding of the factors that make (2015), the Stambaugh-Yuan four-factor ARCH model and observe the previously the commodity innately volatile. Then, we (2017) and the Hou, Xue and Zhang (2015) understood negative relationship between explain the recent development of US shale q-factor models.” volatility and stock prices. I find a production, which may threaten to disrupt BRYAN LYNCH statistically significant negative relationship the status quo in oil markets. In the last between call loan rates and stock returns. decade, markets have endured two price The Effect of Gender Diversity on Liquidity Risk and Bank Performance Furthermore, I also find that changes in call collapses that are historic both in their loan rates are most influential on the frequency and individual magnitudes; “The value add of gender diversity in the manufacturing sector relative to the other 11 however, recent volatility has remained low. financial services industry has been industries tested.” We hypothesize that the shale revolution in overlooked. From providing capital for the United States may have played a role in businesses to financing mortgages, it goes KENDALL GREENBERG this new trend. Following the tradition of without question that financial institutions You can Run But You Can’t Hide: The Pindyck (2004), we utilize a GARCH model play a most critical role in the function of Advance of Shareholder Activism in order to analyze crude-oil price volatility the economy. Our study poses a potential “Shareholder activism has exploded in since 2004. In order to measure the effects solution for managing the immense popularity since the turn of the century, due of the shale revolution, we leverage a major responsibility of these entities. The financial in large part to impressive relative returns news shock in August 2013, at which time crisis of 2008 awakened the public to the generated by its major participants. The Pioneer Natural Resources made the single high levels of risk that banks endure in the result has thus been a surge in assets largest announcement of new retrievable practice of their business. Banks often rely invested in the category, to in excess of $170 shale reserves in history. We find that the on a liquidity cushion in order to mitigate billion today up from less than $3 billion in news announcement had a positive effect on the risk of financial distress. Liquidity 2000 (Inglis 2015; Romito 2015). This influx the conditional variance of oil and a negative consists of the cash and other liquid assets of capital, in absolute dollars and pace of effect on daily returns. The limitations of that banks retain for times of unexpected growth, has caused many to wonder whether our instrument for shale production activists truly create shareholder value and, if constrain our interpretation of these results, See FES Theses on page 10 10 THE FINANCIAL ECONOMICS INSTITUTE

demographic data of state income and sales risk has a significant impact on the stock FES Theses from page 9 tax rates, state education spending per pupil, returns of countries. Additionally, the paper demands for cash. Financial institutions education rates by MSA, unemployment assesses if this change in political risk often vary in their levels of liquidity due to rates by MSA, and median household impacts stock returns differently in emerging different risk tolerances and appetites for income by zip. The study affirms existing and developed countries. The paper return. This thesis contributes to existing research that LTV and debt yield are conducts a risk based portfolio analysis and a literature by looking into the role that significantly correlated with default linear cross-sectional regression analysis in gender diverse boards play in managing probability, found a strong relationship order to find a conclusive result. The liquidity risk and its transparent effect on between loan rate, but not spread on default, portfolio analysis, which replicates a study bank performance. Through an analysis of affirmed industry knowledge that lodging is carried out by Diamonte, Liew, and Stevens seventy-four global, regional, small, mid and generally the riskiest asset class, and found (1996), reveals that there is a difference in large-cap commercial banks, we concluded that education levels in an MSA can the impact that change in political risk has in that increased gender diversity results in significantly explain loan default rates. There developed and emerging countries. The increased liquidity and decreased risk to was limited significance in regression results regression analysis finds that change in bank assets. In the process, we also test the for unemployment rates, education political risk does impact stock returns but effect of increased liquidity on bank spending, and median income on default there is no statistically significant difference performance, as it would likely be a concern probability and no evidence of default in this impact between emerging and for shareholders. correlation with sales or income taxes. The developed countries. The regression analysis study also provides evidence that during also finds that the existing level of risk does GENO QUAID economic bubbles with skewed assets not significantly affect the impact that Event Study of Amazon Entering New valuations, debt-yield becomes a more useful growth in political risk has on stock Markets and the Effects on Incumbent Firm metric compared to LTV.” returns.” Stock Prices LATISHA SHAH SHRUTI TOPUDURTI “This paper examines the effect on Institutional Ownership in Relation to the Determinants of Flows Between Active and incumbent firms of industries which Mandatory Audit Firm Rotation Rule and its Passive Equity Investments Amazon.com, Inc. enters. Using event study Effect on Audit Quality methodology, this paper tests the returns for “Active versus passive investing is a popular incumbent firms on the day Amazon “Previous studies have concluded that topic within the investment community and announces entrance into their industry. The mandatory audit firm rotation (MAFR) has beyond. In particular, many are concerned paper studies the effects on two portfolios not been successful in controlling the with fund flows in and out of active and for each industry, a market capitalization outcomes of the auditor-client relationship. passive investments. Existing research weighted and an equally weighted. Each Additionally, the literature concludes that suggests that recent returns are a reason for portfolio’s expected return is computed using high institutional ownership enhances audit the capital flow from active to passive and the market model and then compared to quality through monitoring the that fees also impact flows negatively. With actual returns to find the abnormal return. management-auditor relationship. This U.S. equity mutual funds as a proxy for The results are mixed. Five industry paper hypothesizes that better corporate active investing and U.S. equity ETFs as a portfolios have significant 1 – day abnormal governance in terms of high institutional proxy for passive investing, I show that prior returns and 2 – day CAR while the six other ownership percentage will enhance audit month flows have a positive and significant industries show no significance in either quality during a MAFR regime. Since relationship with current flows for both metric. The results prompt a discussion and countries that have implemented MAFR in ETFs and mutual funds, as well as for flows logic? behind the markets response to the past have their data in their local from ETFs to mutual funds. I also show that Amazon entering new markets. The leading languages, I use the special case of Arthur mutual fund monthly returns have a positive explanation of the industries that saw effects Andersen clients based in the US as my relationship with flows of mutual funds and is the time in which Amazon entered.” treatment group. I carry out a descriptive flows from ETFs to mutual funds, while statistical analysis and run linear OLS ETF monthly returns have a negative BENJAMIN SACKS regressions with discretionary accruals as a relationship with flows from ETFs to mutual Model Specification for CMBS Loan Default: proxy for audit quality as my dependent funds. This supports prior literature. I also A Retrospective Look at CMBS Performance variable. Results suggest that the percentage find that the differential in mutual fund and Through the Great Recession of institutional ownership does not have a ETF returns (rMF – rETF) is insignificant significant impact on audit quality in a and negative for net fund flows into ETFs. I “This paper examines CMBS loans MAFR regime.” find a generally positive relationship originated from 2004 to 2007 in order to between mutual fund expense ratios and find the correct model specifications for loan AARUSHI TIBREWALA flows into mutual funds, as well as with flows default during the Great Recession. The Risk and Returns: The Impact of Political from ETFs to mutual funds. Finally, I find a data controls for loan-to-value, debt-service Risk on Financial Returns in Emerging and negative relationship between ETF expense coverage ratio, debt-yield, loan rate, loan Developed Markets spread, term lengths, loan origination year, asset class, refinance or acquisition, and “This paper studies if a change in political See FES Theses on page 11 CLAREMONT MCKENNA COLLEGE 11

similar to ETFs exit and new mutual funds incorporating trading fees. Portfolios are FES Theses from page 10 become even more active.” resampled daily, weekly, and monthly, testing ratios and flows into ETFs, as well as with lookback and holding periods ranging from flows from ETFs to mutual funds. The DANIEL WALKER one day to one year. The results show that relationships between expense ratios and Returns to Buying Winners and Selling trading cryptocurrencies using momentum flows mostly contradict prevailing literature, Losers: A Look at Cryptocurrencies strategies derives returns that rapidly except for the relationship between ETF “This paper is, to my knowledge, one of the increase the more often portfolios are expense ratios and ETF flows. This suggests first ever to examine the effectiveness of resampled, with the exception of weekly passive investors are potentially more price- price momentum trading strategies applied portfolios. However, after incorporating conscious than active investors, as passive to cryptocurrencies. Using aggregate trading fees, returns between high and low investors experience negative flows as OHLCV (Open, High, Low, Close, Volume) frequency J/K portfolios become more expense ratios increase, while flows into data on cryptocurrency pairs from Poloniex, comparable, though daily strategies still mutual funds do not have that relationship Bittrex, and Bitfinex, I apply Jegadeesh and bring the highest fee-adjusted returns at with expense ratios. Higher fees for mutual Titman’s classic J-month/K-month about 10% annually. This paper adds to the funds may also suggest a change in the momentum trading strategy, reporting very limited research on momentum factors ▲ composition of mutual funds, as funds annual returns with and without within the cryptocurrency market.”

FEI Affiliated Faculty Research Selected 2017-2018 publications by faculty members affiliated with the FEI: u “Deflationary Pressures Today: The Chinese, Japanese and u “Does It Matter Who Pays for Auto Injuries?" Eric Helland, Spanish Cases Compared,” Richard C.K. Burdekin, with with Paul Heaton, forthcoming Journal of Risk and Insurance. research assistance provided by Xinyi Hu ’19, The Chinese “Medicare Secondary Payer and Settlement Delay,” Eric Economy, forthcoming. u Helland, with Jon Klick, Journal of Empirical Legal Studies, u “Quantifying the Impact of the November 2014 Shanghai-Hong 15(2):356-377. Kong Stock Connect,” Richard C.K. Burdekin, and Pierre L. “Multi-Level Selection in Litigation Data: A Bounds Approach,” Siklos, International Review of Economics and Finance, forthcoming. u Eric Helland, with Jungmo Yoon, Journal of Institutional and u “A First Look at Brexit and Global Equity Markets,” Richard Theoretical Economics. (JITE), 174(1), 115–130, 2018. C.K. Burdekin and Eric Hughson, with research assistance “Maybe There’s No Selection of Disputes for Litigation,” Eric provided by Jinlin Gu ’17, Applied Economics Letters, Vol. 25, No. 2 u Helland with Daniel Klerman and Yoon-Ho Alex Lee, Journal of (2018), pp. 136-140. Institutional and Theoretical Economics (JITE), 174(1), 143-170, u “An Empirical Examination of Factors Driving the Offshore 2018. Renminbi Market,” Richard C.K. Burdekin and Ran Tao, China “Contingent Fee Litigation in New York City,” Eric Helland Economic Journal, Vol. 10, No. 3 (2017), pp. 287-304. u with Daniel Klerman, Brendan Dowling, and Alexander Kappner, u “Deflations in History,” Richard C.K. Burdekin, in Stefano Vanderbilt Law Review, 70(6): 1971-1992, 2017. Battilossi, Youssef Cassis and Kazuhiko Yago (eds.), Handbook of “Estimating Effects of English Rule on Litigation Outcomes,” the History of Money and Currency, New York: Springer, u Eric Helland with Jungmo Yoon, Review of Economics and 2018, in press. Statistics, 99(4): 678-682, 2017. u “Where Are All the Innovators Hiding?” Darren Filson and “The Rise of Exporting By US Firms,” William Lincoln and Michelle Chamberlain, Talent Quarterly: The New Thinking Issue u Andrew McCallum, European Economic Review, 102 (2018), p. 280- (December 2017), p. 40-47 (follow-up webinar available at talent- 297. quarterly.com) u “Pirate’s Treasure,” William Lincoln and Jenny Lin, Journal of u “The Performance of Global Film Franchises: Installment Effects International Economics, 109 (2017), p. 235-245. and Extension Decisions,” Darren Filson and James H. Havlicek ’14, Journal of Cultural Economics, forthcoming. u “Analysis of Stigma and Bank Credit Provision,” Angela Vossmeyer, with research assistance provided by Amy Ingram ’17, u “Do Nonprofits Encourage Environmental Compliance?” Laura Journal of Money, Credit and Banking, forthcoming. E. Grant with Katherine K. Grooms, Journal of the Association of Environmental and Resource Economists, Vol. 4, No. S1, Sept. 2017, Part 2. 12 THE FINANCIAL ECONOMICS INSTITUTE

Where Will FEI Students Be Working?

Congratulations to the following BA/MA and Financial Economics Sequence juniors and seniors who have notified the FEI of their summer internships and after-graduation employment (or other) plans.

Financial Economics Sequence and LAUREN ROSENBERGER, Specialist, Treasury Capital Markets, BA/MA Seniors: Charles Schwab, San Francisco, CA EMILY BASSETT, Investment Banking Analyst, Prager & Co., San BEN SACKS, Analyst, Hamilton Realty Finance, , TX Francisco, CA LATISHA SHAH, Analyst in the Banking and Finance sector, GQR ABHISHEK BIYANI, Director, Fascino Exports Pvt. Ltd., Kolkata, Global Markets, , CA India RAVI SHAH, Investment Banking Analyst, Cain Brothers, San BHAVIKA BOORAGADDA, Client Services Associate, First Republic Francisco, CA Wealth Management, Palo Alto, CA SHRUTI TOPUDURTI, Analyst – Investment Assistant, Core Equities, CARA BRINSTER, Associate, Valuation & Business Analytics, BDO J.P. Morgan Chase & Co., New York, NY USA, LLP, San Francisco, CA PETER WELCH, Finance Development Program Analyst, Apple, JACK BROWN, Research Analyst, Financial Technology Partners, Cupertino, CA San Francisco, CA VICTOR BUNCE, Investment Banking Analyst, Harris Williams & Financial Economics Sequence Juniors — Co., San Francisco, CA Summer Positions: AMBRISH CHITRE, Investment Banking Analyst, Rothschild, New PATRICIO AGUILAR, Risk Analyst, Deutsche Bank, New York, NY York, NY HANNAH BERG, Performance and Analytics Intern, State Street, TIMOTHY DE SILVA, will be attending the MIT Sloan School of Sacramento, CA Management in Cambridge, MA for a PhD in Business SIMON BJERKHOLT, Revenue Generation Intern in the Athletics Administration Department, UC Berkeley, Berkeley, CA KENDALL GREENBERG, Risk Analyst, Deutsche Bank, New York, ALEXANDER HOUY, Private Equity Analyst Intern, Kata Capital NY Partners, New York, NY KANISHK KAPUR, Investment Analyst, ISME ACE & ART Capital, JAMES KENEALLY, Intern in the Corporate Finance Segment, FTI , India Consulting, Los Angeles, CA AMMAR KARMALI, Investment Banking Analyst, Cain Brothers, NIKOLAOS PAPAGEORGIOU, Investment Banking Summer Analyst, New York, NY AXIA Ventures Group, Athens, Greece CLARA MADSEN, Product Analyst, PIMCO, Newport Beach, CA LAN PHAN, Technology M&A Investment Banking Summer Analyst, JOSEPH MALGESINI, Financial Analyst, Apple , Cupertino, CA Citi, San Francisco, CA ARYA NAKHJAVANI, Financial Analyst, EKN Development Group, JACK SVARD, Summer Investment Analyst, Cambridge Associates, Newport Beach, CA San Francisco, CA GENO QUAID, Associate, Boston Consulting Group, Los Angeles, YUJIA YAO, Business Operations Intern, Techtronic Industries, CA Hong Kong, China

2017-2018 BMGI/Michael Larson Asset Management Fellows Post Graduation Employment and Summer Internship Information

SAMARTH CHAWLA ’19, Investment Banking Summer Analyst, , Los Angeles, CA JOHN EVERETT ’19, Investment Banking Summer Analyst, Moelis & Company, San Francisco, CA ROMA FOREST ’19, Summer Investment Banking Analyst, Bank of America Lynch, Los Angeles, CA JENNIFER MACE ’19, Summer Analyst in the Global Investment Research Division, Goldman Sachs, New York, NY JOSEPH SCHEUER ’19, Investment Banking Summer Analyst, New York, NY JONATHAN SHAW ’18, Analyst, , San Francisco, CA CLAREMONT MCKENNA COLLEGE 13

Congratulations to the FEI Summer 2018 Research Analysts:

AHMED BILAL ’19, Economics/Mathematics dual major with a Computer Science Sequence

SHU BIN ’19, Economics/Mathematics dual major with a Computer Science Sequence

XUBIN (HAVEN) SHI ’21, Economics and Environmental Analysis double major with the Financial Economics Sequence

YUJIA YAO ’19, Economics-Accounting major with the Financial Economics Sequence

LANGNING (LORRAINE) ZHAO ’21, Economics and Computer Science double major

Congratulations to the 2018-2019 BMGI/Michael Larson Asset Management Fellows:

JOHN EVERETT ’18, Economics/Government dual major with the Financial Economics Sequence

ROMA FOREST ’19, Economics/ Master’s Program in Finance

REEVE GROBECKER ’19, PPE (Philosophy, Politics and Economics)/Economics dual major

JIA JIAN (BLAZE) LI ’19, Economics/History dual major

JENNIFER MACE ’19, Economics major with the Financial Economics Sequence

ALEXANDER MCKENNA ’20, Economics/Psychology dual major with the Financial Economics Sequence

JOSEPH SCHEUER ’19, Economics major with the Financial Economics Sequence

TANISHA SHETH ’20, Economics/Mathematics dual major with the Financial Economics Sequence

The mission of the Financial Economics Institute is to provide unique research, curricular and extracurricular opportunities engaging the Claremont Colleges in both the theory and practice of financial economics. The FEI administers three programs directed at these objectives. First, the FEI supports collaborative, advanced student/faculty research in financial economics and overlapping disciplines. Second, the FEI oversees the Financial Economics Sequence, a unique curriculum grounded on rigorous quantitative courses in a liberal arts context, preparing students for career opportunities in finance. Third, the FEI sponsors activities for the broader community, including oversight of the Student Investment Fund, provision of databases, space and hardware for multiple purposes, and support for conferences, workshops, internships, networking trips and other events.

Bauer Center, Room 321 500 East Ninth Street | Claremont, CA 91711-6400 Phone: (909) 607-0042 | Fax: (909) 607-0088 E-mail: [email protected] Website: http://financial-economics-institute.org/

The Exchange newsletter is published by the Financial Economics Institute at Claremont McKenna College.