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 - 3.9%. The rate of return on Bpex was only ro - 3.3%. The market today responded to very encouraging news about the unemployment rate, and rm=3.6%. The historical relationship between returns on these stocks and the market portfolio has been estimated from index model regressions as: Apex: PA - 0.5% + 1.2rM Bpex: re - -0.1% + 0.6FM 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? Apex Bpex