The extremum properties of the generalized Rayleigh quotient related to flutter instability are investigated. It is shown that, in addition to the well-known stationary property, under certain circumstances the quotient exhibits maximum-minimum properties which are in contrast to those of the classical Rayleigh quotient. One consequence is that an approximate method of stability analysis using these results leads to a lower bound as opposed to an upper bound in the classical case. The results are applied to multiple-parameter systems and a physical interpretation is given for the generalized Rayleigh quotient, leading to the proof of a convexity theorem.