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

20%

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

$7.5

million even though it experienced a loss, or negative net income, of

$2million. Did the analyst's prediction prove correct? Explain using the values for total annual return.

The total rate of return for the firm is ____ % ?