John is a Minnesotan arable farmer with 60 hectares of land. His main crop is consumption potatoes. His total assets are worth $3,600.000, and he has a loan outstanding of $750,000 over which he pays 6% interest. Their return on assets for this year was $150,000 and he had to pay $21,000 in taxes. Their family consumption rate is 30%. Consumption rate =30% John also knows that the current interest rate of 6% may vary. He looked at the interest rates the past 15 years and discovered that in 6 out of 15 years the interest rate was 4%, in 3 out of 15 years 6% and in the remaining years the interest rate was 8%. 8. How would you call the variation in interest rate? What other sources of variation cause this kind of risk? John is a Minnesotan arable farmer with 60 hectares of land. His main crop is consumption potatoes. His total assets are worth $3,600.000, and he has a loan outstanding of $750,000 over which he pays 6% interest. Their return on assets for this year was $150,000 and he had to pay $21,000 in taxes. Their family consumption rate is 30%. Consumption rate =30% John also knows that the current interest rate of 6% may vary. He looked at the interest rates the past 15 years and discovered that in 6 out of 15 years the interest rate was 4%, in 3 out of 15 years 6% and in the remaining years the interest rate was 8%. 8. How would you call the variation in interest rate? What other sources of variation cause this kind of risk