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CIRO RSE Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Structured Products | 10-14% | - Benefits, risks, and suitability considerations - Types and features of structured products |
| 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 |
| Equities | 18-22% | - Equity markets, trading, and investment strategies - Equity securities characteristics and valuation - Risks and taxation considerations of equity investments |
| Know Your Client (KYC), Know Your Product (KYP), and Suitability | 18-22% | - Client objectives, risk tolerance, time horizon, and financial circumstances - Client information gathering and account opening requirements - Suitability assessment and investment recommendations |
| 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 |
| Portfolio Construction and Investment Concepts | 10-14% | - Portfolio risk and return concepts - Investment strategies and client portfolio management - Asset allocation and diversification principles |
CIRO Retail Securities Sample Questions:
1. What is a principal purpose of the Black-Litterman model in portfolio construction?
A) To calculate a bond's current yield from its coupon and price
B) To guarantee that a portfolio will outperform its benchmark
C) To replace diversification with concentrated stock selection
D) To combine market-implied equilibrium returns with the manager's investment views
2. A 45-year-old investor has been working with their Registered Representative (RR) for over a decade. Their portfolio has been structured to prioritize long-term growth with a moderate risk tolerance. Recently, the investor inherited a substantial sum from a relative, significantly increasing their overall net worth. They are now considering early retirement and have expressed interest in shifting their investment strategy. What should the RR do?
A) Discourage the investor from withdrawing any funds to protect their long-term investment growth
B) Keep the investor's investments unchanged to maintain consistency with the client information
C) Rebalance the investor's portfolio to match the appropriate Investment Dealer model portfolio
D) Renew the investor's information and discuss what adjustments should be made in light of this
3. A mutual fund has total assets of $84 million, liabilities of $9 million and 3 million units outstanding. What is the fund's net asset value per unit?
A) $31
B) $25
C) $28
D) $22
4. What must be calculated when any portion of the money balance in a cash account is overdue by less than 6 business days?
A) The gross amount of all securities in the account
B) The total cash balance available in the account
C) The equity deficiency; net weighted security value minus net cash
D) The total trading volume of all securities in the account
5. Which of the following is a key principle used by auditors to evaluate the significance of various financial statement items in their audit report?
A) Materiality
B) Liquidity
C) Efficiency
D) Profitability
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: D | Question # 3 Answer: B | Question # 4 Answer: C | Question # 5 Answer: A |



