what is the example and formula for this question ?

Calculate and analyze interest risk on investment, risk and return, hurdle rates your selected company

Key Steps : 1. Given the investor breakdown in your companys equity, identify the average investor in your company.

2. Develop a risk profile for your company and break the risk down into its component parts: firm specific and market risks, micro or macro risk, discrete or continuous risks, small or large risks.

3. Get a measure of variability risk in your companys stock and a measure of default risk for its debt, if available.

4. Looking at risk item in your profile list, consider how that risk will be viewed by managers, the average investor and the marginal investor and think of how each of them may view this risk and how they may try to manage that risk.