An analyst predicted last year that the stock of Logistics, Inc., would offer a total return of at least 4% 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 $12 million even though it experienced a loss, or negative net income, of $1.5 million. Did the analyst's prediction prove correct? Explain using the values for total annual return.