A short series on mathematical fundamentals for asset allocation starting with utility theory and risk aversion, useful for determining the correct mixture of stocks and bonds for your personal risk tolerance and calculating the optimal glidepath for accumulation. It can also be used to calculate the correct proportion of stocks and bonds in a market timing strategy where the return assumptions change continuously. This post covers CRRA utility, some math details, the relation between risk tolerance and the Kelly criterion, assumptions of target volatility, multi-asset optimization, effect of time horizon on asset allocation, and uninformed market timing.