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Business, 13.08.2019 00:30 brittanyjacob8

Na 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 = 3.3%. the rate of return on bpex was only rb = 2.7%. 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 = 0.6% + 1.2rm bpex: rb = −0.1% + 0.5rm a. what is the predicted returns for apex & bpex?

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