About a year ago, Nigel bought some shares of a mutual fund. He bought the fund at $24.50 a share and now trades for $26. Last year, the fund paid dividends of 40 cents per share and had Capital gains of $1.83 a share. Using the approximate yield formula what is the rate of return on Nigel's investment? Would he have made a 20% rate of return of the stock had risen to $30 a share?