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A $4 MM portfolio is composed of $1 MM of IBM stock and $3 MM of AT&T stock. If IBM stock has a return of

A $4 MM portfolio is composed of $1 MM of IBM stock and $3 MM of AT&T stock. If IBM stock has a return of 10% and AT&T stock has a return of 5%, what is the portfolio return?

A) 5%

B)6.25% C) 7.5%

D)10%

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