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CIRO RSE Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Fixed Income Securities | 18-22% | - Fixed income products and market characteristics - Fixed income investment strategies and risks - Bond pricing, yields, duration, and interest rate risk |
| Portfolio Construction and Investment Concepts | 10-14% | - Investment strategies and client portfolio management - Asset allocation and diversification principles - Portfolio risk and return concepts |
| Structured Products | 10-14% | - Types and features of structured products - Benefits, risks, and suitability considerations |
| Equities | 18-22% | - Equity markets, trading, and investment strategies - Risks and taxation considerations of equity investments - Equity securities characteristics and valuation |
| Know Your Client (KYC), Know Your Product (KYP), and Suitability | 18-22% | - Suitability assessment and investment recommendations - Client information gathering and account opening requirements - Client objectives, risk tolerance, time horizon, and financial circumstances |
| Mutual Funds and Exchange-Traded Funds (ETFs) | 20-24% | - Mutual fund structures, features, and fees - Fund performance evaluation and suitability considerations - ETF structures, trading mechanisms, and characteristics |
CIRO Retail Securities Sample Questions:
1. A Portfolio Manager evaluates a global equity fund focused on large-cap tech stocks in North America, Europe, and Asia, using a broad global bond index as the benchmark. The fund outperformed the benchmark by 4% over the past year. Which statement best reflects the suitability of this benchmark?
A) It is inappropriate because a market risk-free rate should be used instead
B) It is inappropriate because it does not match the fund's investment universe and asset class
C) It should only include North American equities, since most tech companies are based there
D) It is appropriate although it underperformed the fund, since the goal is to beat any market index
2. A company had a 9% return on its equity and a net profit margin of 5% for this year. If the company had shareholder equity of $5,000,000, what is the company's total revenue for this year?
A) $9,000,000
B) $7,000,000
C) $11,000,000
D) $10,000,000
3. A client purchased a stock for $70 per share. The company's financial condition has since deteriorated, and an updated analysis estimates the shares are worth approximately $42. The client refuses to consider selling until the price returns to $70 because that was the original purchase price. Which behavioural bias is most directly influencing the client?
A) Herding bias
B) Survivorship bias
C) Anchoring bias
D) Availability bias
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 total cash balance available in the account
B) The gross amount of all securities in the account
C) The total trading volume of all securities in the account
D) The equity deficiency; net weighted security value minus net cash
5. Which additional factor is included in the Carhart four-factor model that is not part of the original Fama- French three-factor model?
A) Value
B) Size
C) Momentum
D) Market risk premium
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: A | Question # 3 Answer: C | Question # 4 Answer: D | Question # 5 Answer: C |





