Final answer:
The question requires calculating the expected dividend yield for Portman's stock using given financial data. However, additional company-specific information is needed to accurately determine the dividend yield. The calculation using the Capital Asset Pricing Model (CAPM) provides an expected return of 12.64% on the stock, not the dividend yield.
Step-by-step explanation:
The question asks for the expected dividend yield for Portman's stock, given the risk-free rate (RRF) of 4.00%, the market risk premium (RPM) of 4.80%, and Portman's beta of 1.80. To calculate the expected return (ER) on Portman's stock, we use the Capital Asset Pricing Model (CAPM) formula:
ER = RRF + beta * (RPM).
Substituting the given values, we get:
ER = 4.00% + 1.80 * 4.80% = 4.00% + 8.64% = 12.64%.
Since the question specifically asks for the expected dividend yield, we need additional information regarding the company's growth rate, current stock price, or earnings. Without this information, we cannot accurately determine the expected dividend yield based on the data provided.