Theorem: Let X X X n12 , ,..., be independent random variables such that each Xi has an expected value of μ and variance of σ 2. Let n n X ...XXS + ++= 21 . Then: [ ] [ ] μ nXEnSE in = ⋅= , and [ ] [ ] 2 σ ⋅=⋅= nXVarnSVar in . The standard deviation of Sn is σ ⋅n , which is less than n σ , the sum of the standard deviations for each policy.