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 = 3.3%. The rate of return on Bpex was only r8 = 2.7%. The market today responded to very encouraging news about the unemployment rate, and Im= 3%. The historical relationship between returns on these stocks and the market portfolio has been estimated from index model regressions as: Apex ra = 0.4% + 1.5mm : = -0.1% + 0.87M a. What is the predicted returns for Apex & Bpex? (Do not round intermediate calculations. Round your answers to 1 decimal place.) Answer is complete but not entirely correct. Predicted Returns | Apex 5.1 % Bpex 2.4 % b. Which company do you think won the lawsuit? Apex Bpex