3) Suppose that you are long $1,000,000 worth of a certain stock A which has a daily standard deviation of returns of 2%. You are considering hedging it (you would like to sell it but you find no buyers) with an index, say the S&P, which has a standard deviation of daily returns of 1%. How much, in dollar terms, would you sell to consider yourself hedged? . Do you think it is a good hedge? What are pros and cons