In a recent closely contested lawsuit, Apex sued Bpex for patent infringement. The jury came back today with its decision. The rate oreturn on Apex was rA = 3.7%. The rate of return on Bpex was only rg = 3.3%. The market today responded to very encouraging newabout the unemployment rate, and M = 3.4%. The historical relationship between returns on these stocks and the market portfolio hasbeen estimated from index model regressions as:Apex: A = 0.3% + 1.5PMBpex: rg = -0.1% + 0.5rM.Required:a. What is the predicted returns for Apex & Bpex?b. Which company do you think won the lawsuit?Complete this question by entering your answers in the tabs below.Required A Required BWhat is the predicted returns for Apex & Bpex?Note: Do not round intermediate calculations. Round your answers to 1 decimal place.ApexВрехPredicted Returns%%

In a recent closely contested lawsuit, Apex sued Bpex for patent infringement. The jury came back today with its decision. The ra return on Apex was rA = 3.7%. The rate of return on Bpex was only rg = 3.3%. The market today responded to very encouraging about the unemployment rate, and M = 3.4%. The historical relationship between returns on these stocks and the market portfolio been estimated from index model regressions as: Apex: A = 0.3% + 1.5PM Bpex: rg = -0.1% + 0.5rM. Required: a. What is the predicted returns for Apex & Bpex? b. Which company do you think won the lawsuit?

In a recent closely contested lawsuit, Apex sued Bpex for patent infringement. The jury came back today with its decision. The ra return on Apex was rA = 3.7%. The rate of return on Bpex was only rg = 3.3%. The market today responded to very encouraging about the unemployment rate, and M = 3.4%. The historical relationship between returns on these stocks and the market portfolio been estimated from index model regressions as: Apex: A = 0.3% + 1.5PM Bpex: rg = -0.1% + 0.5rM. Required: a. What is the predicted returns for Apex & Bpex? b. Which company do you think won the lawsuit?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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