U.S. versus overseas stock returns. How are returns on common stocks in overseas markets related to returns in U.S. markets? Consider measuring 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 Europe, Australasia, Far East (EAFE) index. Both are recorded in percents. Here is part of the Minitab output for regressing the EAFE returns on the S&P 500 returns for the 25 years 1989 to 2013.
The regression equation is
Analysis of Variance
| Source | DF | SS | MS | F |
| Regression | 5587.0 | |||
| Error | ||||
| Total | 24 | 9940.6 |
Exercises 10.60 through 10.64 use this output.
10.60 The ANOVA table.
Complete the analysis of variance table by filling in the “Residual Error” row and the other missing items in the DF, MS, and F columns.
eafe