In a recent closely contested lawsuit, Apex sued Bpex for patent infringement. The jury came back today with its decision. The rate of return on Apex was r A  3.1%. The rate of return on Bpex was only r B  2.5%. The market today responded to very encouraging news about the unemployment rate, and r M  3%. The historical relationship between returns on these stocks and the market portfolio has been estimated from index model regressions as:

Apex: rA 5 .2% 1 1.4rM Bpex: rB 5 2.1% 1 .6rM On the basis of these data, which company do you think won the lawsuit?