Exam Code: RSE
Exam Name: Retail Securities Exam
Certification Provider: CIRO
Corresponding Certification: CIRO Registered Representative (RR)
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CIRO RSE Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Fixed Income Securities18-22%- Bond pricing, yields, duration, and interest rate risk
- Fixed income investment strategies and risks
- Fixed income products and market characteristics
Topic 2: Portfolio Construction and Investment Concepts10-14%- Portfolio risk and return concepts
- Asset allocation and diversification principles
- Investment strategies and client portfolio management
Topic 3: Know Your Client (KYC), Know Your Product (KYP), and Suitability18-22%- Client information gathering and account opening requirements
- Client objectives, risk tolerance, time horizon, and financial circumstances
- Suitability assessment and investment recommendations
Topic 4: Structured Products10-14%- Benefits, risks, and suitability considerations
- Types and features of structured products
Topic 5: Mutual Funds and Exchange-Traded Funds (ETFs)20-24%- ETF structures, trading mechanisms, and characteristics
- Fund performance evaluation and suitability considerations
- Mutual fund structures, features, and fees
Topic 6: Equities18-22%- Equity securities characteristics and valuation
- Risks and taxation considerations of equity investments
- Equity markets, trading, and investment strategies

CIRO Retail Securities Sample Questions:

What are the disadvantages of a private placement of securities?

  • A. Broad investor base
  • B. Limited liquidity
  • C. Higher costs
  • D. Regulatory oversight
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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The risk-free rate is 4%, the expected market return is 9%, and a security has a beta of 1.4. According to the Capital Asset Pricing Model, what is the security's expected return?

  • A. 7.0%
  • B. 9.0%
  • C. 12.6%
  • D. 11.0%
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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Which of the following best summarizes the disclosure requirements for a prospectus?

  • A. The company's marketing strategy and customer demographics
  • B. The company's business plan, 10-year financial projections and proprietary technology
  • C. The company's potential returns for the investment
  • D. The company background, management, finances, risks and future plans
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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Ten Canadian depositary receipts (CDRs) represent the economic exposure of one underlying foreign share.
An investor owns 1,500 CDRs. How many underlying-share equivalents does the position represent?

  • A. 15
  • B. 15,000
  • C. 100
  • D. 150
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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A company wants to raise capital but prefers to delay equity dilution while still attracting investors interested in potential ownership. Which type of bond is most suitable?

  • A. Sinking fund bonds
  • B. Extendable bonds
  • C. Callable bonds
  • D. Convertible bonds
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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