Purpose – The purpose of this paper is to develop a simple model illustrating the benefits of operating a diverse fleet of aircraft. Design/methodology/approach – The paper is theoretical. It describes how real options are beneficial to the firm in both capital budgeting and risk management....

Recent studies suggest that analyst ratings have become less biased following the Global Settlement and NASD and NYSE Rules implemented in 2002. Assuming analyst ratings are more reliable due to the decline in positive bias, we investigate the existence of excess returns for various holding...