Institute for Research in Advanced Financial Technology (IRAFT) 1. Applied Finance Lab 2. Student-Managed Investment Fund 3. M.S. in Finance David Nawrocki – Director Michael Pagano – Associate Director James Jablonski – Assistant Director Andrea DeMaskey – Finance Department Chairperson

Applied Finance Lab Reuters Bridge Station – 16 stations Reuters Bridge Station – 16 stations Bloomberg – 1 Station Bloomberg – 1 Station Trader Ex – Baruch Trading Simulation Trader Ex – Baruch Trading Simulation Wharton Research Data Services (WRDS) Wharton Research Data Services (WRDS) CRSP-Compustat Merged CRSP-Compustat Merged S&P Global, DRI Global & Domestic S&P Global, DRI Global & Domestic IRRC Takeover Defenses & Directors IRRC Takeover Defenses & Directors Compustat Complete Back Data Compustat Complete Back Data NYSE TAQ – SDC Platinum Mergers NYSE TAQ – SDC Platinum Mergers FIS Bank Holding Co. FIS Bank Holding Co. December Shake-Down – Opening January 2005 December Shake-Down – Opening January 2005

Strategic Partners (In the Works) Equipment Donations (Dell Computers) Equipment Donations (Dell Computers) PHLX trading environment (in progress) PHLX trading environment (in progress) Workstation Clients tied into PHLX Stratus Development System Workstation Clients tied into PHLX Stratus Development System Equity remote specialist Equity remote specialist Floor broker Floor broker Algorithmic Trading (To be Explored) Algorithmic Trading (To be Explored)

SMF class – 18 undergraduates, 5 MBAs SMF class – 18 undergraduates, 5 MBAs Outperforming all benchmarks since 3/25/04. Outperforming all benchmarks since 3/25/04. As 12/10/04: SMF % S&P % Domini 400 Social Index +8.31% Top-Down Sector and Industry Screening, SR Screening, Value Analysis, Portfolio Selection. Currently 80% Cash until Students go through analysis. Fully invested by end of October.

ECONOMIC BUSINESS CYCLE/ INDUSTRY ANALYSIS SOCIAL RESPONSIBILITY SCREENING FINANCIAL SCREENING PORTFOLIO ANALYSIS INITIAL INVESTMENT ( ) PERFORMANCE REPORTING INVESTMENT POLICY PORTFOLIO COMPLIANCE CORPORATE GOVERNANCE MARKETING EXIT STRATEGY FOR SEMESTER BREAK

M.S. in Finance Board of Trustees Approval – December Board of Trustees Approval – December First Full-Time Day Graduate Program. First Full-Time Day Graduate Program. First Class - Summer First Class - Summer Breakeven: 12 Students. Breakeven: 12 Students. Goal: Students in First Class. Goal: Students in First Class. High Quality Academic Program that stresses theory and application. High Quality Academic Program that stresses theory and application. Importance to C&F: Helps retain and attract high quality finance faculty. Importance to C&F: Helps retain and attract high quality finance faculty. Challenge: To be proactive in placing students in internships and jobs. Challenge: To be proactive in placing students in internships and jobs.

Proposed MSF Time Line Spring 05Summer 05Fall 05Spring 06 Prerequisites Intermediate Macroeconomics Mathematics of Economics Financial Statement Analysis MSF Survey of Financial Theory Internship Prob & Stochastic Processes MSF Financial Markets and Institutions Student Managed Fund I Time Series & App Bus Forecast MSF Applied Corporate Finance Student Managed Fund II Corporate Risk Management Derivatives Financial Modeling Econometrics