Appropriate required return for an investor

Question

Problem: See the table below for computing the average returns and the standard deviation for ABC Corp and the market.

Month    ABC Corp    Market
1               6%            4%
2               3               2
3              -1               1
4              -3              -2
5               5                2
6               0                2

a. If ABC's beta is 1.54 and the risk free rate is 8% what would be the appropriate required return for an investor owning ABC.

b. How does the ABCs historical return compare with the return you believe to be a fair return, given the organizations systematic risk