A disadvantage to modern portfolio theory (MPT) is that small institutions generally hold significant amounts of regionally specific and illiquid loans.

Name: A disadvantage to modern portfolio theory (MPT) is that small institutions generally hold significant amounts of regionally specific and illiquid loans.
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Small institutions are more likely to hold regionally specific and illiquid loans, which can be difficult to incorporate into MPT analysis.

A Disadvantage to Modern Portfolio Theory (MPT) Is That Small