In a recent closely contested lawsuit, Apex sued Bpex for patent infringement. The jury came back today with its decislon. The rate of return on Apex was rA=3.14. The rate of retum on Bpex was only rB=2.5%. The market today responded to very encouraging news about the unemployment rate, and rM=34. The historical relationship between returns on these stocks and the market portfolio has been estimated from index model regressions as: A Apex:rA =0.26+1.4n Bpexc rg =0.14+0.6rM a. What is the predicted returns for Apex \& Bpex? (Do not round intermediate calculations. Round your answers to 1 decimal place.) b. Which company do you think won the lawsuit? Apex Bpex