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CIRO RSE Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Fixed Income Securities | 18-22% | - Fixed income investment strategies and risks - Bond pricing, yields, duration, and interest rate risk - Fixed income products and market characteristics |
| Portfolio Construction and Investment Concepts | 10-14% | - Asset allocation and diversification principles - Portfolio risk and return concepts - Investment strategies and client portfolio management |
| Equities | 18-22% | - Risks and taxation considerations of equity investments - Equity markets, trading, and investment strategies - Equity securities characteristics and valuation |
| Know Your Client (KYC), Know Your Product (KYP), and Suitability | 18-22% | - Client objectives, risk tolerance, time horizon, and financial circumstances - Suitability assessment and investment recommendations - Client information gathering and account opening requirements |
| Structured Products | 10-14% | - Benefits, risks, and suitability considerations - Types and features of structured products |
| Mutual Funds and Exchange-Traded Funds (ETFs) | 20-24% | - Fund performance evaluation and suitability considerations - Mutual fund structures, features, and fees - ETF structures, trading mechanisms, and characteristics |
CIRO Retail Securities Sample Questions:
1. Which of the following best describes the type of market data typically provided by an equity exchange such as the Toronto Stock Exchange (TSX)?
A) Real-time trade prices, bid-ask spreads and trading volumes
B) Only end-of-day summary prices and trading volumes
C) Only historical pricing data from the previous month
D) Regulatory filings and continuous disclosure reports
2. An investment portfolio has a gross annual return of 14%, a management fee of 2%, a risk-free rate of 3%, and a standard deviation of 8%. What is the Sharpe ratio after fees?
A) 1.34
B) 1.38
C) 1.22
D) 1.13
3. A leveraged ETF seeks to provide twice the daily return of an equity index. The index rises and falls sharply over several trading days but finishes the period near its starting value. Which statement is most accurate?
A) The ETF eliminates market risk through leverage
B) The ETF must earn exactly twice the index's total multi-day return
C) The ETF must also finish near its starting value
D) Daily compounding may cause the ETF's multi-day return to differ substantially from twice the index return
4. A Portfolio Manager evaluates a global equity fund focused on large-cap tech stocks in North America, Europe, and Asia, using a broad global bond index as the benchmark. The fund outperformed the benchmark by 4% over the past year. Which statement best reflects the suitability of this benchmark?
A) It is inappropriate because a market risk-free rate should be used instead
B) It is inappropriate because it does not match the fund's investment universe and asset class
C) It is appropriate although it underperformed the fund, since the goal is to beat any market index
D) It should only include North American equities, since most tech companies are based there
5. Which of the following best reflects the Registered Representative's (RR's) duty when providing the relationship disclosure materials to a retail client?
A) The materials should be provided after each action conducted by the RR, should be used to illustrate how the action is likely to affect the suitability determination and the client must acknowledge receipt
B) The materials should be provided after the recommendations have been given, should reflect the reason for the recommendation and the RR must request a signed acknowledgement from the client
C) The materials should be provided after the know-your-client (KYC) information has been collected, should reflect that information and the RR should allow the client time to digest and discuss the contents
D) The materials should be provided before the know-your-client (KYC) information is collected, should be used as the basis of collecting that information and the RR should decide the relevant parts to discuss
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: D | Question # 3 Answer: D | Question # 4 Answer: B | Question # 5 Answer: C |







