Chapter 4 Achieving a 92.59% Profit Ratio

Improving Returns with the Composite Bond-Stock Valuation Model

The two bond-stock valuation systems, the Baa Bond-Stock Valuation Model and the U.S. Government Bond-Stock Valuation Model, were previously explained. In this chapter, you first compare the performance of these two models. Then, by combining them, you produce a third model, which is superior to either alone.

Compare the reliability of the two models you have already examined in Tables 4.1, 4.2, and 4.3.

Table 4.1 1981–2007

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Summary: Although the Baa Bond-Stock Model produced a higher percentage of winning entries in its most ...

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