What happens if you apply a technique from stock-analysis to software projects?
The Sharpe Ratio is one of the most fundamental ways to analyze the risk/reward trade-off for an investment. It can even help you answer the question, "if I could reduce risk to a given level, how much money would that be worth?"
You can perform the same analysis on a software project.
If you could reduce cost or schedule risk, how much money would that be worth?
Learn the answer in the article on my blog at devquant.com: