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The matching of the investor's requirements and needs such as risk tolerance and growth potential preference with a specific investment. Also, how well or how poorly a regression line represents the data points it is based on. A good ‘fit’ indicates a high correlation coefficient.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
To meet the needs of an investor or portfolio. That is, a security fits a portfolio if it has the acceptable amount of risk, return, meets the investor's ethical preferences, and so forth.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
A condition in which a security fulfills an investor's portfolio needs. For example, an investor may select a new municipal bond because that bond's maturity makes it a good fit in the investor's portfolio.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.