Aaron invested in shares of preferred stock (face value of $100) of the Red Wing Corporation. He purchased the shares on March 1, 2018, when the price was $95.00 per share. Over the next 12 months, Red Wing paid the stated dividend of 6%. On March 1, 2019, the share price of the Red Wing preferred stock was $105.00 per share. Inflation was at a rate of 3%. Calculate the real rate of return of Aarons investment.