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CIRO RSE : Retail Securities Exam

RSE

Exam Code: RSE

Exam Name: Retail Securities Exam

Updated: Sep 23, 2026

Q & A: 122 Questions and Answers

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CIRO RSE Exam Syllabus Topics:

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

CIRO Retail Securities Sample Questions:

Question #1
A five-year bond has a face value of $1,000, an annual coupon of $60 and a market price of $950. Using the approximate yield-to-maturity formula, what is the bond's approximate yield to maturity?

A. 7.18%
B. 6.00%
C. 7.89%
D. 11.58%


Question #2
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. Regulatory filings and continuous disclosure reports
D. Only historical pricing data from the previous month


Question #3
Which of the following best describes the voting rights of most preferred shareholders?

A. They are required to approve any company mergers and acquisitions
B. They can be used on all corporate decisions alongside common shareholder votes
C. They are gained once investors hold shares for a certain period
D. They generally do not have them, but may gain them if dividends remain unpaid


Question #4
How does asset class selection for an investment portfolio affect liquidity risk?

A. Investing in private securities generally provides more liquidity than investing in publicly traded stocks
B. Liquidity risk is specific to fixed-income securities and has little impact on equity investments
C. A diversified portfolio with a mix of liquid and illiquid assets helps improve returns while reducing liquidity risk
D. To avoid liquidity risk, all assets in a portfolio should be short-term and traded on a secondary market


Question #5
An investor expects short-term market interest rates to rise and wants a bond whose coupon income will adjust periodically with prevailing rates. Which instrument best meets this objective?

A. Strip bond
B. Floating-rate bond
C. Fixed-rate perpetual bond
D. Zero-coupon bond


Solutions:

Question #1
Correct Answer: A
Question #2
Correct Answer: A
Question #3
Correct Answer: D
Question #4
Correct Answer: C
Question #5
Correct Answer: B

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RSE - Retail Securities Exam
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