Asset allocation is the assignment of investment dollars quite different from a title pawn Atlanta transaction. For example, one investor may allocate 70 percent of her investment dollars to common stock and 30 percent to corporate bonds, whereas another investor may place 10 percent of his investment funds in stocks, 60 percent in bonds, and 30 percent in real estate. Asset allocation is a critical choice, and the mix you select is affected by many variables. Risk tolerance is one factor; another is the position of the investor relative to his or her life-cycle. Asset allocation is also determined by an investor’s objectives.