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Lindsey Carifi ’02, a double major in math and economics and business from Winter Haven, Fla., is exploring a mathematical theorem, the Markowitz model, using the stock market for her senior honors thesis.
“I will be using historical data to find the return and variance of 30 different stocks,” says Carifi. “After collecting the data, I will plot them on a graph and use software to find an equation of a curve that fits the data. Then, once the frontier is established, I will try to find the most efficient weights of the stocks and treasury bills representing the risk-free asset that will give me an optimal return.”
Carifi is undertaking the yearlong study in pursuit of departmental honors in mathematics and economics. At Lafayette, students are encouraged to explore a topic of interest in a particular major or disciplinary program. Lafayette recognizes superior academic work by awarding honors for outstanding performance in writing a senior thesis or in conducting senior research.
Carifi’s advisors are Qin Lu, assistant professor of mathematics, and Sheila Handy, assistant professor of economics and business. Carifi seeks Lu’s guidance for the mathematical part of her thesis such as the proofs and real weights of stocks. Professor Handy guides Carifi in the literature review. They discuss different journal articles on the topic and how they relate to the Markowitz model.
“This is challenging for Lindsay because she’s using real stocks to show what’s the optimal ratio,” explains Lu. “Markowitz gives the formula, but Lindsay needs to show graphically what the dynamics are and how it works in reality. She’s going to try to find out what ratio would be best at maximizing return while minimizing risk.”
Carifi cultivated an interest in finance through her course work at Lafayette. She learned of the Markowitz model in a corporate finance class and was eager to explore the topic further.
“Lindsay’s going way beyond what she’s learned in class,” says Handy, who taught the corporate finance class. “She’ll give a full literature evaluation as well as learn to use new software to plot all these stocks.”
Carifi finds the faculty and staff eager to help her go beyond the material in the classroom. “Everyone is so supportive with helping me with my research,” says Carifi. “Also, Lafayette has a great resource base, which makes it easy to find the materials you need.”
Lu says that Carifi is a highly motivated student. “I give her a lot of work and she always tries to give me her best,” says Lu. “She is the student who visits my office most often because she feels uncomfortable with any work that is unresolved. I’m very pleased to work with Lindsay.”
Carifi says that she has always had an interest in investments and the stock market, which is evident in her choice of summer experiences. This past summer she had an internship with AT&T in Basking Ridge, N.J., where she helped research companies for the mergers and acquisitions department. During the summer of 2000, Carifi interned with A.G. Edwards and Sons in her hometown of Winter Haven, assisting five brokers and helping with client marketing.
Carifi is on the dean’s list and is a member of Omicron Delta Epsilon (the economic honors society), director of finance for Alpha Phi sorority, a lab proctor for the math department, and a teaching assistant for the financial accounting lab in the economics and business department.
A National Leader in Undergraduate Research. Lindsay Carifi ’02 made a presentation on honors research she did under the guidance of Sheila Handy, assistant professor of economics and business, at the National Conference on Undergraduate Research.