One of the core presumptions of CAPM is complete diversification of investors who, in this manner, may eliminate non-systemic risks of an investment. However, non-systemic risk cannot generally be eliminated precisely in the case of a limited group of shareholders or a lack of or low degree of diversification on the part of investors. This is typical in the case of privately-held, small and medium-sized enterprises (SME). The total beta approach likewise takes non-system risk of an investment into account and in practice results in a modified CAPM. Note: We generally indicate total beta as well even where the complete diversification criterion is satisfied.