Your boss can absolutely be your friend. You should be a good friend back and recognize you have two relationships, and if they are a good person with integrity

Your boss can absolutely be your friend. You should be a good friend back and recognize you have two relationships, and if they are a good person with integrity they won't make professional actions on the basis of personal relationships. That's just basic professionalism. I've been friendly with many of my bosses during and after the term of employment I've worked for them. I would never, ever have expected any favoritism on then basis of that friendship from them, including laying me off if necessary and distributing raises and promotions purely based on merit with no regards to our friendship. Any expectations otherwise, to me, would mean I was being the bad friend. I'd have the exact same expectations of family if I worked for them.