Question: Calculate The Expected Return An analyst predicted last year that the stock of Logistics, I nc., would offer a total return of at least 10%
Calculate The Expected Return
An analyst predicted last year that the stock of Logistics, Inc., would offer a total return of at least 10% in the coming year. At the beginning of the year, the firm had a stock market value of $10 million. At the end of the year, it had a market value of $12 million even though it experienced a loss, or negative net income (so, there is no dividends to be distributed in this year), of $2.5 million. Whats the expected return?
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