A B D E F H 1 2 3 Sample Data 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10 12/31/09 12/31/08 12/31/07 12/31/06 12/31/05 Extra Space Storage Price Dividends 105.62 3.56 90.48 3.36 87.45 3.12 77.24 2.93 88.21 2.24 58.64 1.81 42.13 1.45 36.39 0.85 24.23 0.56 17.40 0.40 11.55 0.38 10.32 1.00 14.29 0.93 18.26 0.91 15.40 S&P 500 Price Dividends 3,230.78 58.02 2,506.85 53.54 2,673.61 48.74 2,238.83 45.55 2,043.94 43.20 2,058.90 39.27 1,848.36 34.80 1,426.19 31.04 1,257.61 26.35 1,257.64 22.68 1,115.10 22.27 903.25 28.36 1,468.36 28.77 1,418.30 24.67 1,248.29 25 1 Calculate HPR for each year 2 Calculate Arithmetic Mean HPR 3 Calculate Standard Deviation 4 Calculate Geometric Mean Which investment contains more risk 5 per return? What is the correlation between these 6 two investments? Would there be any diversification benefit by adding Extra Space Storage 7 to an S&P 500 portfolio? 26 27 28 A B D E F H 1 2 3 Sample Data 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10 12/31/09 12/31/08 12/31/07 12/31/06 12/31/05 Extra Space Storage Price Dividends 105.62 3.56 90.48 3.36 87.45 3.12 77.24 2.93 88.21 2.24 58.64 1.81 42.13 1.45 36.39 0.85 24.23 0.56 17.40 0.40 11.55 0.38 10.32 1.00 14.29 0.93 18.26 0.91 15.40 S&P 500 Price Dividends 3,230.78 58.02 2,506.85 53.54 2,673.61 48.74 2,238.83 45.55 2,043.94 43.20 2,058.90 39.27 1,848.36 34.80 1,426.19 31.04 1,257.61 26.35 1,257.64 22.68 1,115.10 22.27 903.25 28.36 1,468.36 28.77 1,418.30 24.67 1,248.29 25 1 Calculate HPR for each year 2 Calculate Arithmetic Mean HPR 3 Calculate Standard Deviation 4 Calculate Geometric Mean Which investment contains more risk 5 per return? What is the correlation between these 6 two investments? Would there be any diversification benefit by adding Extra Space Storage 7 to an S&P 500 portfolio? 26 27 28