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CIRO RSE Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Execution and Market Integrity | Approximately 5.8% | - Order handling - Market integrity rules - Best execution |
| Topic 2: Monitoring, Reporting and Maintaining Client Relationships | Approximately 5.8% | - Performance reporting - Ongoing suitability review - Account monitoring - Client relationship management |
| Topic 3: Fixed Income | Approximately 8.3% | - Interest rate risk - Yield and pricing - Credit risk - Government and corporate bonds |
| Topic 4: Managed Products and Other Investments | Approximately 13.3% | - Exchange-traded funds (ETFs) - Alternative investments - Structured products - Mutual funds |
| Topic 5: Portfolio Construction | Approximately 10.8% | - Diversification - Portfolio risk management - Asset allocation |
| Topic 6: Securities Analysis | Approximately 11.7% | - Financial statement interpretation - Fundamental analysis - Technical analysis |
| Topic 7: Equities | Approximately 10% | - Equity markets - Common and preferred shares - Valuation concepts |
| Topic 8: Know-Your-Client (KYC) and Suitability | Approximately 22.5% | - Regulatory obligations - Client profile collection and maintenance - Suitability assessment - Investment objectives and risk tolerance - Know-Your-Product (KYP) |
| Topic 9: Investment Recommendations | Approximately 11.7% | - Product selection - Client communication - Recommendation development |
CIRO Retail Securities Sample Questions:
What is the main driver of the intraday price of an exchange-traded fund (ETF)?
- A. Fund manager's portfolio rebalancing
- B. Supply-demand changes on the exchange
- C. Daily valuation of assets under management
- D. Liquidity from institutional investors
Correct Answer: B 🗳️
Explanation: Only visible for Prep4sures members. You can sign-up / login (it's free).
An investor is considering purchasing a preferred share that provides a fixed dividend for an extended period, with no set maturity date. Which type of preferred share best meets the investor's considerations?
- A. Callable
- B. Convertible
- C. Participating
- D. Perpetual
Correct Answer: D 🗳️
Explanation: Only visible for Prep4sures members. You can sign-up / login (it's free).
What is the expected return of a portfolio of investments if the risk-free rate is 5%, beta is 2.0, portfolio variance is 15% and market rate of return is 10%?
- A. 10%
- B. 20%
- C. 15%
- D. 12%
Correct Answer: C 🗳️
Explanation: Only visible for Prep4sures members. You can sign-up / login (it's free).
A company reports current assets of $1,200,000, including inventory of $300,000 and prepaid expenses of
$100,000. Current liabilities are $500,000. What is the company's quick ratio?
- A. 1.60
- B. 1.20
- C. 1.40
- D. 2.40
Correct Answer: A 🗳️
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A zero-coupon bond will pay $1,000 at maturity in four years and currently trades for $780. What is its approximate annual compound yield?
- A. 5.13%
- B. 6.41%
- C. 4.00%
- D. 7.80%
Correct Answer: B 🗳️
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