Final answer:
The two considerations that affect asset allocation decisions are risk tolerance and investment time horizon.
Step-by-step explanation:
When making asset allocation decisions, there are two important considerations to keep in mind. The first consideration is risk tolerance, which refers to how comfortable an individual is with taking on different levels of risk. This can vary depending on factors such as age, financial goals, and time horizon. The second consideration is investment time horizon, which is the length of time an individual plans to hold onto their investments. A longer time horizon allows for more aggressive allocation strategies, while a shorter time horizon may call for more conservative allocations.