Please mark the following as either True or False

1. To decrease the variance of a portfolio of assets, simply add assets with low/small variance.

2. An investor who is in the 33% tax bracket is indifferent between a 9% tax-free muni and a 6% taxable bond.

3. The standard deviation of a portfolio of assets is simply the weighted average of the standard deviations of the individual assets.

4. The formula of the approximations of the real return becomes less accurate as the rate of inflation increases.

5. When deciding between a risky asset (or portfolio) and a risk-free asset, the more risk averse the investor, the greater the proportion they will choose to invest in the risky asset