GIPS

Hi, What is the difference between internal measure of dispersion and external ?

i think internal is one portfolio vs. the whole composite while external is the portfolio and/or composite vs. other composites or the benchmark? just my best guess… can someone confirm or deny…

Internal Dispersion would be Std Deviation of portfolios themselves. External Dispersion would be the spread between the Highest portfolio and lowest portfolio returns within the composite. I believe that is correct.

are you sure about this? i don´t have the cfa or schweser texts here, but I have the schweser quicksheet, and in the last page, I can read: if more than 5 portfolios in the composite, a measure of internal dispersion (individual portfolios around the ocmposite return)

Ok, then Internal is my External…not sure what External would be then…maybe between your composites? So possibly: Internal: would be the spread between the Highest portfolio and lowest portfolio returns within the composite. External:would be the spread between the Highest composite and lowest composite returns within the firm.

also, various dispersion measures are appropriate I recall: stand dev, sharpe, interquartile range, and one other…

High minus Low is the other…

do you know in which pages of schweser or CFA is external distribution mentioned? I find internal, but nothing about external thx

i think external is dispersion of composite returns