Read the following passage and answer the item that follows. Your answer to this item should be based on the passage only.

Private investment is generally volatile, and foreign private investment is more volatile still, because the range of avenues open to it is far greater, spanning the entire world. So the responsibility for providing employment cannot be left to foreign direct investment alone. Current FDI inflows are volatile over time, across sectors and across regions, a necessary consequence of chasing the highest returns, and the adverse consequence is unstable employment along with worsening income and regional inequality. A likely positive consequence of foreign investment is the inflow of new technology, though its diffusion is uncertain, since India's existing physical and human capital may prove inadequate to absorb it.

With reference to the above passage, the following assumptions have been made:

1. Relying on foreign investment in the long run is not an economically sound employment policy.

2. Policies must be undertaken to reduce volatility in foreign private investment.

3. Policies must be undertaken to strengthen domestic private investment.

4. Public investment should be given priority over private investment.

5. Substantial public investment in education and health should be undertaken.

Which of the above assumptions is/are valid?