8. Which of the following statements is incorrect?

A. Portfolio diversification methods have one advantage that they are applicable to all FIs, regardless of their size.

B. Most portfolio managers will accept some level of risk above the minimum risk portfolio if they expect to receive higher returns.

C. It is useful to compare the loan mix of an individual FI to a national benchmark loan mix as this helps determine the extent to which the individual FI may differ from an efficient portfolio composition.

D. In the past, data availability limited the use of sophisticated portfolio models to set concentration limits within lending to particular industries.

E. The Moody's Analytics Portfolio Manager Model assumes normality to loan returns while the modern portfolio theory doesnt.