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CIRO RSE Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Know-Your-Client (KYC) and Suitability | Approximately 22.5% | - Regulatory obligations - Suitability assessment - Investment objectives and risk tolerance - Know-Your-Product (KYP) - Client profile collection and maintenance |
| Topic 2: Managed Products and Other Investments | Approximately 13.3% | - Mutual funds - Alternative investments - Structured products - Exchange-traded funds (ETFs) |
| Topic 3: Securities Analysis | Approximately 11.7% | - Fundamental analysis - Technical analysis - Financial statement interpretation |
| Topic 4: Portfolio Construction | Approximately 10.8% | - Diversification - Asset allocation - Portfolio risk management |
| Topic 5: Equities | Approximately 10% | - Valuation concepts - Common and preferred shares - Equity markets |
| Topic 6: Investment Recommendations | Approximately 11.7% | - Recommendation development - Product selection - Client communication |
| Topic 7: Execution and Market Integrity | Approximately 5.8% | - Order handling - Market integrity rules - Best execution |
| Topic 8: Fixed Income | Approximately 8.3% | - Credit risk - Yield and pricing - Interest rate risk - Government and corporate bonds |
| Topic 9: Monitoring, Reporting and Maintaining Client Relationships | Approximately 5.8% | - Client relationship management - Ongoing suitability review - Performance reporting - Account monitoring |
CIRO Retail Securities Sample Questions:
1. A zero-coupon bond will pay $1,000 at maturity in four years and currently trades for $780. What is its approximate annual compound yield?
A) 4.00%
B) 7.80%
C) 5.13%
D) 6.41%
2. A corporation is liquidated after it becomes insolvent. All secured and unsecured creditors have been paid, followed by the full liquidation entitlement of the preferred shareholders. Who is entitled to any assets remaining after these claims?
A) The common shareholders
B) The bondholders
C) The preferred shareholders for a second payment
D) The company's directors
3. A Registered Representative (RR) is comparing two companies and correctly calculates their interest coverage ratio as below:
Company A: 1.3
Company B: 1.9
Both the companies have the same interest expense during the period. Which of the following is correct with respect to the two companies?
A) Net Profit Margin % of Company B is higher than Net Profit Margin % of Company A
B) Total Debt of Company B is higher than Total Debt of Company A
C) Earnings before Interest and Tax (EBIT) of Company B is higher than the EBIT of Company A
D) Total Assets of Company B are higher than Total Assets of Company A
4. A portfolio earned 12% during the year. The risk-free rate was 4%, and the portfolio's beta was 1.25. What was the portfolio's Treynor ratio?
A) 10.00%
B) 5.00%
C) 6.40%
D) 8.00%
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) Zero-coupon bond
C) Fixed-rate perpetual bond
D) Floating-rate bond
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: A | Question # 3 Answer: C | Question # 4 Answer: C | Question # 5 Answer: D |






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