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According to your analysis of SNB's stock., you believe that with a probability of 0.60 . SNB's EPS will increase. You have just been informed
According to your analysis of SNB's stock., you believe that with a probability of 0.60 . SNB's EPS will increase. You have just been informed that SNB is going to acquire a major financing company. In your opinion, this appears to be in response to better recent performance and higher EPS. As an analyst you formulate the probability of this new information given the event. You believe that this decision would have been made with a probability of 0.8 in response to higher EPS and with a probability of 0.2 in response to lower EPS. So what is the updated probability of SNB's EPS increase given this new information
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