Design a machine learning system to predict stock prices. What data sources would you use, and how would you process this data?

Instruction: Detail your approach, including data collection, preprocessing, and model selection.

Context: This question tests the candidate's understanding of financial market predictions using machine learning, with a focus on data handling and model architecture.

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I would start by reframing the problem slightly, because directly predicting stock prices is usually less useful and less stable than predicting a return, direction, volatility band, or some other decision-relevant target over a defined horizon. The target definition should match the trading or risk decision the model is meant to support.

For data,...

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