$1.$ E$8-1.$ An analyst predicted last year that the stock of Mallard Inc. would offer a total re$-$ turn of at least $8\%$ in the coming year. At the beginning of the year, the firm had a total stock market capitalization of $$20$ million. At the end of the year, its market cap was $$23$ million even though it experienced a loss, or negative net income, of $$3$ million. Did the analyst$$s prediction prove correct? Explain using the values for total annual return.