An European investor owns long positions in two stocks A and B, denominated in dollars (hence, V is such that the second derivative with respect to any risk factor and itself is zero). Since the sensitivity of the position with respect to the price of share A is constant, the investor can construct a static hedge against risk associated to this risk factor by taking a short position in an instrument, C, affected by a risk factor whose changes exhibit negative covariance with the price of A. " There are two errors in the text above. Briefly explain them.