There are rumors that there is some news next week. 80% probability it is true. 20% is false. If the news is true, the price will increase by 5% (10%). If the news is false, the price will not change. The news will come out at the end of one week.

One other news could arrive. If a bad news arrives, the stock will drop by 10%. The bad news arrive with a possibility of 5% within one week. If the current price is 10 Riyals, and the price daily movement is 1%.

How will you set up your entry price and stop price?

Hint: Use entry price/order and stop order as a filter for good or bad news.

Hint: Assume that the noise have 4 cases: +1% with 35%, -1% with 35%, +2% with 15%, -2% with 15%

Can someone help me solve this question?? It is both related to Finance and Statistics.