In this problem please round your answers totwo decimalsand enter thecorrect sign(e.g., -123.98 or +45.76).

Assume there are two periods (t=0 and t=1) and two possible states of the world at t=1 (i.e., s=2), with state 1 probability=₁=0.35 and state 2 probability=₂=0.65. An investor has a time-separable utility of wealth U(W) = 8 - W², and an initial wealth of W₀=100 Euros. There are two primitive assets pt₁and pt₂with the prices of P₁=0.74 and P₂=0.22.

What is the interest rate in this case?