Please explain equations

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=3.28. The rate of return on Bpex was only rB=2.68. The market today responded to very encouraging news about the unemployment rate, and rM=3%. The historical relationship between returns on these stocks and the market portfolio has been estimated from index model regressions as: Apex: rA=0.58+1.6rM Bpex: rB=0.18+0.4rM 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