Michigan Tech College of Business Newsblog

No Longer ‘Broke and Hungry’

Published April 22, 2014

Front left moving clockwise: Heath Johnson, James Sturos (Treasurer), Daniel Olson, Derek Menard (Secretary), Brett Ludwig (President), and Cory Sullivan pose with Shelly Larson and Dan Dalquist, Edward Jones advisors

On Wednesday, April 9th, The Michigan Tech Finance Club hosted their second event of “Broke and Hungry?”. 53 students attended the event, lured by the promise of knowledge and pizza. This year, local Edward Jones advisors Dan Dalquist and Shelly Larson took the time to talk to students about investing their money. The main topic for discussion was the transition from college life to getting that first job, as well as the importance of saving for retirement. Dalquist preached to students from all majors about technical financial topics such as tax savings, retirement plans, and asset securities. Presenting some scary statistics about the current financial situation of most Americans, Dalquist and Larson appealed to audience members about the merits of getting their finances in order. Since Tech students are numbers-driven, students were able to clearly see the drawbacks of waiting to save for retirement. Ensuing the presentation was a barrage of questions. Students were very interested in both advisors’ opinions of the future states of the market, social security, inflation, and how Edward Jones operates. Even after the session concluded, both advisors spoke with many students one-on-one to answer specific questions.

Brett Ludwig, President of the Finance Club, talked to a few of the students in order to gauge their reactions to the presentation. Overall, everyone seemed to enjoy the event and got a lot out of it. One student, who is going to work for a company in Texas after graduation commented, “I’m looking at all this right now and this is exactly what I needed to know.” The event was a hit and the Finance Club hopes to be able to host more events of this nature in the future for students. A huge thank you goes to Dan Dalquist and Shelly Larson for making this one possible.

On behalf of the Finance Club, we hope you don’t wait until you’re broke and hungry to join us for the next event!

**This article was written by Brett Ludwig, with contributions from Emanuel Oliveira and Laura Bucci.

Buche wins Props for Profs

Published April 21, 2014

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Mari Buche was selected as this week's winner of Props for Profs.

The Props for Profs program through the Jackson Center for Teaching and Learning asks students to nominate an instructor who has gone over and above the typical in their teaching or mentoring duties for students. This is the third teaching recognition that Buche has received (this semester alone) after being nominated for the 2014 Greek Life Outstanding Faculty Award and winning the Teacher of the Year Award in the School of Business and Economics earlier this semester.

Props for Profs winner Mari Buche is an Associate Professor of Management Information Systems in the School of Business and Economics. Buche was nominated by two students, both of whom commented on her willingness to listen and her concern for her students. The nominators called her a “kind soul” who is both “passionate and knowledgeable about everything she teaches.” Her willingness to listen to students and consider their perspectives, the fact that she occasionally “brings cookies and other treats” and her ability to make learning fun were also emphasized.

Both Buche and her nominators will receive a $5 gift certificate to purchase a snack or drink at the Library Café or several other locations on campus.

If you know a prof who has gone over and above, send some props today and maybe you’ll be next week’s winner.

LSGI Stock Competition

Published April 18, 2014

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Student Organizations

Joe Dancy (’76), manager of the LSGI Venture Fund, graciously funded the first LSGI Stock Competition at Michigan Tech’s School of Business and Economics (SBE). Dancy a long-time supporter of Michigan Tech, was recently selected as a member of the SBE Dean’s Advisory Council. He believes a finance education is important to any student’s future, regardless of his/her major.

Accordingly, Dancy donated $1,000 in prize money for a portfolio competition held in the Investment Analysis (FIN 4000) course taught by Dr. Dean Johnson. The course provides an overview of financial products, while discussing the operations of the stock market and bond market. It also delves into portfolio theory, as well as basic stock and bond valuation techniques. Students in this class are encouraged to participate in national stock contests.

Most stock contests select winners based solely on the portfolio with the highest return. This approach unfortunately encourages risk-seeking behavior, which has the potential to send the wrong message to students. Instead, Johnson was able to tie the stock competition to the instruction in his Investment Analysis course. At the beginning of the term, students constructed their portfolios from stocks across all sectors in the economy. After learning the risk-return concept and the mean-variance framework, each student calculated the risk-return measures for their portfolio just like a real world fund. These risk-return measures include the portfolio’s return, standard deviation, Sharpe Ratio, Treynor Measure, Alpha, Beta, R-Squared, M-Squared, T-Squared and Information Ratio. “The competition was not only a significant experience,” remarked student Caihang Li, “but also encouraged me to better myself.”

In the end, three students, Li, Spenser Eller, and Heath Johnson, came out on top based on their portfolio’s risk-adjusted returns. For example, Eller was able to turn a hypothetical $100,000 into $108,834 in eleven weeks versus $101,435 for an investment in the S&P 500 Index. More importantly, his portfolio’s Sharpe Ratio was five times higher than the S&P 500’s Sharpe Ratio! Eller expressed immense gratitude for Dancy’s contribution that made this possible, stating “The money will be put to good use, and the experience that I have gained will be invaluable.”

The SBE, Johnson and the FIN 4000 students would like to thank Mr. Dancy and the LSGI Fund for their continued support in our students’ financial education.

Vote for SBE in the iOme Challenge!

Published April 16, 2014

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Competitions

For the 3rd consecutive year, Michigan Tech’s School of Business and Economics has been picked as one of 6 finalists in iOme Challenge‘s #moneysmartweek video competition. Students in SBE’s Macroeconomics and Banking & Financial Institutions courses did the hard work by putting this stellar video together. But they need YOUR help to win a $250 prize! Tech is currently in last place, but we can easily pull ahead with your help! Voting is simple:

Step 1: Like iOme Challenge on Facebook

Step 2: Scroll through their page and find Michigan Tech’s video. Make sure you like it to cast your vote!

Step 3: Share the video on your own Facebook page so that all of your friends can help us win.

It’s that easy!! The poll closes on Friday, April 18 at 11:59 pm CST, so cast your vote NOW! GO HUSKIES!

Business Insider: Overachieving Tech Is Most Underrated College in Michigan

Published April 11, 2014

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In the News

Business Insider Chooses the Most Underrated College in Every State

Michigan Tech has earned itself another title: The Most Underrated College in Michigan. In a national review, Business Insider recently chose the 50 most underrated colleges in the United States. They toted Michigan Tech as the champ for Michigan, stating of the winners:

Oftentimes, these schools’ strong academic programs are overshadowed by the popular perception that a college is better if it’s tough to get into. These colleges challenge that myth, and are smart – and potentially safe – options for student applicants.

Several factors helped decide which schools made the top of the list for each state, including academic rankings, in-state population, and acceptance rates.

It’s true: we have an acceptance rate close to 75%. Also true: on average, our incoming students have a 3.66 GPA on a 4.0 scale, and an ACT composite score of 26.7. Our students are crazy smart, and we were recently recognized as #11 in the nation for public schools with the smartest students.

Are you a Tech alum, current student, or future student? Let me know in the comments below what your most favorite underrated thing is about Michigan Tech! Mine’s the starting salary of graduates from the School of Business and Economics: they make $53,000 on average!

For the full list of the 50 most underrated institutions nationwide, check out the picture below.