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Please answer fully and accurately to get a good review Problem 11-20 In a recent closely contested lawsult, Apex sued Bpex for patent Infringement. The

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Problem 11-20 In a recent closely contested lawsult, Apex sued Bpex for patent Infringement. The jury came back today with its decision. The rate of return on Apex was la = 3.6%. The rate of return on Bpex was only rp = 3.0%. The market today responded to very encouraging news about the unemployment rate, and = 3.2%. The historical relationship between returns on these stocks and the market portfolio has been estimated from Index model regressions as: Apex: ra = 0.4% + 1.6r Bpex: r = -0.18 + 0.619 a. What is the predicted returns for Apex & Bpex? (Do not round Intermediate calculations. Round your answers to 1 decimal place.) Predicted Returns Apex b. Which company do you think won the lawsult? O Apex

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