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 rA=3.1%. The rate of return on Bpex was only rB=2.5%. The market today responded to very encouraging news about the unemployment rate, and rM=3%. The historical relationship between returns on these stocks and the market portfolio has been estimated from index model regressions as: Apex: rA=0.3%+1.6rM Bpex: rB=0.1%+0.8rM Required: a. What is the predicted returns for Apex \& Bpex? b. Which company do you think won the lawsuit? Complete this question by entering your answers in the tabs below. What is the predicted returns for Apex \& Bpex? Note: Do not round intermediate calculations. Round your answers to 1 decimal place