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CIRO RSE Exam Syllabus Topics:
| Section | Weight | Objectives |
| Mutual Funds and ETFs | 20–24% | - Suitability and sales obligations
- Fund structures and disclosure documents
|
| Structured Products | 10–14% | - Applicable regulatory rules
- Product types and risk profiles
|
| Portfolio Construction and Managed Accounts | 10–14% | - Asset allocation and risk metrics
- Registered account types
|
| Fixed Income | 18–22% | - Bond characteristics and pricing
- GICs and other retail fixed-income products
|
| KYC and Suitability | 20–24% | - Suitability determination and documentation
- Client information collection and updates
|
| Trade Execution and Market Integrity | 8–12% | - Order routing and best execution
- Prohibited practices and compliance
|
| Equities | 18–22% | - Trading mechanics and market structure
- Equity product features and risks
|
| Client Monitoring and Relationship Management | 8–12% | - Performance reporting and CRM2
- Complaint handling procedures
|
CIRO Retail Securities Sample Questions:
1. An investor holds a bond portfolio consisting of long-term and short-term bonds. The long-term bonds have an average modified duration of 10 years, while the short-term bonds have an average modified duration of 3 years. If interest rates increase by 1%, what is the likely impact on the portfolio's value?
A) The portfolio's value will decrease, but the impact will be greater for long-term bonds
B) The portfolio's value will remain unchanged, because interest rate changes do not affect bond prices
C) The portfolio's value will decrease, but short-term bonds will offset the losses from long-term bonds
D) The portfolio's value will increase significantly due to the long-term bonds' higher yields
2. If the beta of a company is 1.8, what can be said with certainty about its risk profile?
A) It has high unsystematic risk
B) It has high systematic risk
C) It has low systematic risk
D) It has low unsystematic risk
3. An investor insists on excluding companies with low diversity and inclusion scores from their portfolio. The Registered Representative (RR) identifies that this restriction significantly reduces the number of available investments in the investor's preferred sector. What is the most appropriate action?
A) Respect the restriction and construct a portfolio with reduced diversification
B) Override the restriction to ensure adequate diversification and risk management
C) Exclude the restriction but compensate by increasing exposure to other sectors
D) Recommend the investor abandon the restriction to access a broader range of investments
4. 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) 1.22
B) 1.38
C) 1.34
D) 1.13
5. An investor is deciding between investing in a company with strong earnings, but high volatility or another company with stable returns, but slower growth. How would fundamental analysis influence this decision?
A) It would prioritize short-term price movements over long-term performance
B) It would suggest investing only in dividend-paying stocks
C) It would disregard earnings data and focus only on trading volume
D) It would favor the high-earnings company if earnings growth is sustainable
Solutions:
Question # 1 Answer: A | Question # 2 Answer: B | Question # 3 Answer: A | Question # 4 Answer: D | Question # 5 Answer: D |