An analyst predicted last year that the stock ofLogistics, Inc., would offer a total return of at least 17%in the coming year. At the beginning of the year, the firm had a stock market value of $9million. At the end of theyear, it had a market value of $11million even though it experienced a loss, or negative netincome, of $0.5million. Did theanalyst's prediction provecorrect? Explain using the values for total annual return.

What is the total rate of return for the firm? ___%

Did the analysts prediction prove correct?