Question: 4. In a recent closely contested lawsuit, Apex sued Bpex for patent infringement. The jury came back today with its decision. The rate of return

4. In a recent closely contested lawsuit, Apex sued Bpex for

4. 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 3.1 percent. The rate of return on Bpex was only 2.5 percent. The market today responded to very encouraging news about the unemployment rate, and the market return was 3 percent. The historical relationship between returns on these stocks and the market portfolio has been estimated from index model regression s as: Apex: r,-0.2%+1.4m Boex: r 0.1%+0.6rm Based on these data, which company do you think won the lawsuit? Explain

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