How are returns on common stocks in overseas markets related to returns in U.S.

Question

How are returns on common stocks in overseas markets related to returns in U.S. markets? Measure U.S. returns by the annual rate of return on the Standard & Poor's 500-Stock Index and overseas returns by the annual rate of return on the Morgan Stanley EAFE (Europe, Australasia, Far East) index. Both are recorded in percents. Regress the EAFE returns on the S&P 500 returns for the 29 years 1971 to 2000. Here is part of the output for this regression. The regression equation is EAFE = 5.15 + 0.591 S&P. (Round your answer for F to two decimal places and your answers for SS and MS to one decimal place.) for

All other answers are correct, please solve for F.

Complete the analysis of variance table by filling in the missing boxes. (Round your answer for s to two decimal places and your answer for r2 to three decimal places.)

What is s?
21.355
What is r2?

0.106

Analysis of Variance Source DF SS MS F Regression 1 1455.7 1455.7   ??? Residual Error 27 12313.4 456.1 Total 28 13769.1

Explanation / Answer

regression standard error= S = SST-SSR = 13769.1 -1455.7 = 12,313.4

r^2 = 1-(SSR/SST) = 1-(12,313.4/13769.1) =0.10573 = 0.106

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