  A model is developed to describe state reduction in an EPR experiment as a
continuous, relativistically-invariant, dynamical process. The system under
consideration consists of two entangled isospin particles each of which undergo
isospin measurements at spacelike separated locations. The equations of motion
take the form of stochastic differential equations. These equations are solved
explicitly in terms of random variables with a priori known probability
distribution in the physical probability measure. In the course of solving
these equations a correspondence is made between the state reduction process
and the problem of classical nonlinear filtering. It is shown that the solution
is covariant, violates Bell inequalities, and does not permit superluminal
signaling. It is demonstrated that the model is not governed by the Free Will
Theorem and it is argued that the claims of Conway and Kochen, that there can
be no relativistic theory providing a mechanism for state reduction, are false.
