to multiple industries. For example, rather than allocating a company 100 percent to computer hardware, a company may have an allocation 60 percent computer hardware and 40 percent electronic equipment. For a given asset, the sum of industry allocations across all industries is equal to one (or 100 percent). Industry assignments are provided by various vendors; some of the more popular are presented in Table 20.2. The Global Industry Classification Standard, which has been developed by Standard & Poor's and Morgan Stanley Capital International, provides a consistent set of global sector and industry definitions. Note that each industry classification scheme has associated with it a set of sector definitions. Sectors are groups of industries and provide a coarser grouping of assets. Investment Style/Risk Exposures Also known as risk exposures, investment style exposures capture an asset's sensitivity to a particular investment strategy. For example, a portfolio may have a high exposure to large-cap assets. This exposure would come about from either an overweight in large-cap stocks and/or an underweight of small-cap stocks, or some combination of both. Table 20.3 provides some examples of investment style factors. We provide a brief description of each factor and an example of how we measure an asset's exposure to the factor. Country or Local Market Exposures We present two ways in which to define an asset's country exposure. In the first approach, an asset exposure takes a value of one if it belongs to a country, zero otherwise. An important question is, what do we mean by the term belongs} To answer the question, we can think of two types of associations that a company can have with a country: 1.    Country of domicile-the country where a company has been registered. 2.    Country of issuance-the country where stock has been issued. This is the same location as the stock exchange. Note that certain stocks may be issued in TABLE 20.2 Some Popular Industry Classification Vendors by Region Market Vendor United States Russell, Barra, Standard 8c Poor's (pre-GICS), GICS Canada MSCI (pre-GICS), GICS Europe FTSE, MSCI (pre-GICS), Dow Jones STOXX, GICS Japan Topix, GICS Asia except Japan GICS Global MSCI (pre-GICS), GICS GICS-Global Industry Classification Standard. MSCI-Morgan Stanley Capital International. FTSE-Result of joint effort between the Financial Times and the London Stock Exchange.