Question: 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

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 l'Apex = 3.1%. The rate of return on Bpex was only TBpex = 2.5%. The market today responded to very encouraging news about the unemployment rate, and the market return is $r_M=3\%$. The historical relationship between returns on these stocks and the market portfolio has been estimated from index model regressions as: TApex = 0.2% + 1.4 XTM TBpex = -0.1% +0.6 X TM Judging from these data, which company do you think won the lawsuit

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