Asea Brown Boveri, Mannheim, is considering the purchase of an East Berlin maufacturer of turbines from the Treuhandanstalt. It is an opportunity to start in East Germany and to work for markets in Eastern Europe. Low productivity, high pollution, potential inablity of Eastern customers to buy,...

The B case adds the possibility of using hedging to manage risks. The impact of hedging on the distribution of profits and particularly its variance is analyzed to understand the value that hedging creates for Spiegel. Students will analyze how hedging reduces risk and find optimal hedging plans...

This note describes how to move beyond the appraisal of risk toward improving the risk characteristics of alternatives that the world offers us. It considers ways to create value and reduce risk through wise management. One way is to obtain better information; methods of valuing perfect and...