Response to the following problem:
Select a major share, bond and managed fund in which you are interested in investing. For each of them, gather data for each of the past three years on the annual dividends or interest paid and the capital gain (or loss) that would have resulted had they been purchased at the start of each year and sold at the end of each year. For the managed fund, be sure to separate any dividends paid into investment income dividends and capital gains distributions.
a. For each of the three investment vehicles, calculate the HPR for each of the three years.
b. Use your annual HPR findings in part a to calculate the average HPR for each of the investment vehicles over the three-year period.
c. Compare the average returns found in part b for each of the investment vehicles.