An analyst predicted last year that the stock of Logistics, Inc., would offer a total return of at least 13% in the coming year. At the beginning of the year, the firm had a total stock market capitalization of $11 million. At the end of the year, its market cap was $13 million even though it experienced a loss, or negative net income, of $2 million. Did the analyst's prediction prove correct? Explain using the values for the total annual return.

Question content area bottom

The total rate of return for the firm is %. (Round to two decimal places.)

Did the analyst's prediction prove correct? Explain using the values for the total annual return.