GIPS

[derswap07]

What is the difference between internal nad external dispersion measure?

 

[QuinnJ]

I found this confusing myself as well. Here is a good article explaning the differences.
Internal dispersion is a measure of the range of returns within the composite within each annual period.
External dispersion is also a measure of the range of returns. But in this case we are measuring the range of a given composite’s past returns (over the most recent 36 months).
Source: http://www.spauldinggrp.com/standard-deviation-as-internal-and-external-...