Mushi is the retired CEO of a large pharmaceutical company and currently owns $2M worth of shares in his company, which he had previously received as part of his compensation package. Mushi is not allowed to sell those shares for the next 3 years. Mushi also has $10M in cash that he wants to invest in the stock market. Mushi believes in the CAPM and thus wants exposure to the market portfolio. Mushi is considering investing (long or short) in sector ETFs to achieve this goal.The weight of the Healthcare sector in the market is 5%. Assume for simplicity that the Healthcare sector is perfectly correlated to Mushi's pharmaceutical stock. Approximately how many dollars should Mushi allocate to the Healthcare sector ETF?

Long $1.4

Long $1.5

Long $1.6

Long $2

Short $1.4M

Short $1.5M

Short $1.6M

Short $2M