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Part $1$

An analyst predicted last year that the stock of$$ Logistics, Inc., would offer a total return of at least $8\%$ in the coming year. At the beginning of the$$ year, the firm had a total stock market capitalization of $$$$8$ million. At the end of the$$ year, its market cap was $$$$9$ million even though it experienced a$$ loss, or negative net$$ income, of $$$$1$ million. Did the$$ analyst's prediction prove$$ correct? Explain using the values for total annual return.

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Part $1$

The total rate of return for the firm is

$$

$\%.($Round to two decimal$$ places.$)$