<p>I have to answer this in English as I can not type fast enought in Chinese.</p><p>The 2 state binary process of EDF default simply follows a <em><strong>Bernoulli distribution</strong></em> with parameter <em>p</em> = EDF. Now we know that if <strong><em>X</em></strong> is a Bernoulli distribution which takes value 1 with success probability <span class="texhtml">p, </span><span class="texhtml">E(<em><strong>X</strong></em>) = <em>p*1 + (1-p)*0</em> = <em>p</em>, and Var(<strong><em>X</em></strong>) = E(<em><strong>X</strong></em>^2) - [E(<strong><em>X</em></strong>)]^2 </span><span class="texhtml">= <em>p*(1-p)</em>. </span></p><p><span class="texhtml">Replacing the p in the general model with EDF in your example, you have Variance of EDF = EDF*(1-EDF).</span></p>