Question: Ive gotten this incorrect. What is the correct answer? View previol 2. In a recent closely contested lawsuit, Apex sued Bpex for patent infringement. The

Ive gotten this incorrect. What is the correct answer?

View previol 2. 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 = 3.1%. The rate of return on Bpex was only rs = 2.5%. The market today responded to very encouraging news about the unemployment rate, and Im = 3%. The historical relationship between returns on these stocks and the market portfolio has been estimated from index model regressions as: Ints Apex: ra = 0.3% + 1.6rM eBook Bpex: rg = -0.1% + 0.8rM Print a. What is the predicted returns for Apex & Bpex? (Do not round intermediate calculations. Round your answers to 1 decimal place.) References | Apex Bpex Predicted Returns 4.9% 3.7%

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