Studying historical time series you find that $25\%$ of all trading days EA's stock price declines.

You also determine that $70\%$ of the price falls of EA can be associated with a negative news

event. If you believe that there is a $50/50$ chance that Disney will rescind EA's rights to make

Star Wars games, what is your estimated probability of EA suffering a stock decline the trading

day after Disney makes such an announcement?

A$)$ Cannot be computed with the information provided

B$)17\mathrm{.}8\%$

C$)25\%$

D$)35\%$

E$)70\%$