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An analyst predicted last year that the stock of Logistics, Inc. would otter a total return of at least 12% in the coming year. At

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An analyst predicted last year that the stock of Logistics, Inc. would otter a total return of at least 12% in the coming year. At the beginning of the year, the firm had a stock market value of $6 million. At the end of the year, it had a market value of $7 million even though it experienced a loss, or negative net income, of $2.5 million. Did the analysts prediction prove coned? Explain using the values for total annual return. The total rate of return for the firm is %. (Round to two decimal places.) Did the analyst's prediction prove correct? (Select the best answer below.) Yes, the analysts prediction is correct because the firm s negative net income was hilly recovered by the positive annual rate of return. Yes, the analysis prediction is correct because the firm's total rate of return is even higher than the predicted one regardless of the negative net income. No, the analysts prediction is incorrect because the firm had a lower total rate of return than the one the analyst predicted. No, the analysis prediction is incorrect because the firm had a negative net income even though its total rate of return is higher the predicted one

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