1. Look at the Portfolio Excel Template for the parameters of average annual returns, standard deviations of returns, and correlations among returns of the five mutual funds. They are historical average returns, standard deviations, and correlations during 2000-2018. (Ignore the covariance matrix in this assignment. The covariance of investments A and B is the correlation between the returns of A and B, multiplied by the standard deviations of the returns of A and B) a. Do you think that these parameters are also good estimates of future parameters? For example, the average return of U.S. bonds during 2000-2018 was higher than the average return of U.S. stocks during the period. b. The standard deviation of returns of U.S. bonds during 2000-2018 was lower than the standard deviation of return of U.S. stocks during the period. Do you think that it is reasonable to expect this will be true in the future as well? (Have a look again at the realized returns during the longer period, 1926-2018, in slides of Module 1.)