CALCU LATIN G AP P ROX IM ATE Y IE LD O N M U TUAL FUN D . About a year ago, Gus Stanton bought some shares in the Anvil Fund. He bought the fund at $24.50 a share, and it now trades at

$26.00. Last year, the fund paid dividends of 40 cents a share and had capital gains distributions of $1.83 a share. Using the approximate yield formula, what rate of return did Gus earn on his investment? Repeat the calculation using a financial calculator. Would he have made a 20 percent rate of return if the stock had risen to

$30 a share? L01