a$.$ An analyst predicted last year that the stock of Logistics, Inc., would offer a total

Question No$.7$ return of at least $10\%$ in the coming year. At the beginning of the year, the firm had a stock market value of $$10$ million. At the end of the year, it had a market value of $$12$ million even though it experienced a loss, or negative net income, of $$2\mathrm{.}5$ million. Did the$-$analyst's$-$prediction$-$prove correct? Explain using the values for total annual

b$.$ Four analysts cover the stock of Fluorine Chemical. One forecasts a $5\%$ return for the return. coming year. A second expects the return to be negative $5\%.$ A third predicts a $10\%$ return. A fourth expects a $3\%$ return in the coming year. You are relatively confident that the return will be positive but not large, so you arbitrarily assign probabilities of being correct of $35\%,5\%,20\%,$ and $40\%,$ respectively, to the analysts' forecasts. Given these probabilities, what is Fluorine Chemical's expected return for the coming year?