Julius Spence has tested several predictive models in order to identify undervalued stocks. Spence used about 30

Question:

Julius Spence has tested several predictive models in order to identify undervalued Spence used about 30 company-specific variables and 10 market-related variables to predict returns for about 5,000 North American and European He found that a final model using eight variables applied to telecommunications and computer yields spectacular results. Spence wants you to use the model to select investments. Should you? What steps would you take to evaluate the model?
Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...