How are returns on common stocks in overseas markets related to returns in one c

Question

How are returns on common stocks in overseas markets related to returns in one countries markets? Consider measuring the countries returns by the annual rate of return on the index A and overseas returns by the annual rate of return on index B. Both are recorded in percents. We will regress the B returns on the A returns for the years 1991 to 2014. Here is part of the output for this regression. The regression equation is

B = 3.17 + 0.827A.

Complete the analysis of variance table by filling in the missing boxes. (Round your answer for F to two decimal places and your answers for SS and MS to one decimal place.)

5552.1

Please provide details on how each value was calculated. Thanks!

Analysis of Variance Source DF SS MS    F Regression 1

5552.1

5552.1 Residual Error    Total 10078.3

Explanation / Answer

df total = n-1 = 24 -1 = 23

df error = 23-1 = 22

SS error = SS total - SS regression

MS = SS/df

F = MS reg / MS err

Please rate if you found this response useful

Source DF SS MS    F Regression 1 5552.1 5552.1 26.98647 Residual Error 22 4526.2 205.7364 Total 23 10078.3

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