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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
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 wasra - 3.2%. The rate of return on Bpex was only ng = 2.6%. The market today responded to very encouraging news about the unemployment rate, and y=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% + 1.4r Bpex ro - -0.1% + 0.6FM . What is the predicted returns for Apex & Bpex? (Do not round intermediate calculations. Round your answers to 1 decimal place.) Predicted Returns Apex Bpex %
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