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 TA= 3.9%. The rate of return on Bpex was only rg=3.5%. The market today responded to very encouraging news about the unemployment rate, and in= 3.6%. The historical relationship between returns on these stocks and the market portfolio has been estimated from index model regressions as: Apex: A - 0.3% + 1.17M Bpex: 8 - -0.1% + 0.77M a. What is the predicted returns for Apex & Bpex? (Do not round intermediate calculations. Round your answers to 1 decimal place.) Predicted Returns Apex Bpex % b. Which company do you think won the lawsuit? OApex