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CIRO RSE exam : Retail Securities Exam

RSE Exam Questions
  • Exam Code: RSE
  • Exam Name: Retail Securities Exam
  • Updated: Aug 06, 2026
  • Q & A: 122 Questions and Answers
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CIRO RSE Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Portfolio Construction and Investment Concepts10-14%- Portfolio risk and return concepts
- Investment strategies and client portfolio management
- Asset allocation and diversification principles
Topic 2: 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
Topic 3: Structured Products10-14%- Benefits, risks, and suitability considerations
- Types and features of structured products
Topic 4: Know Your Client (KYC), Know Your Product (KYP), and Suitability18-22%- Client objectives, risk tolerance, time horizon, and financial circumstances
- Suitability assessment and investment recommendations
- Client information gathering and account opening requirements
Topic 5: Fixed Income Securities18-22%- Bond pricing, yields, duration, and interest rate risk
- Fixed income investment strategies and risks
- Fixed income products and market characteristics
Topic 6: Equities18-22%- Risks and taxation considerations of equity investments
- Equity securities characteristics and valuation
- Equity markets, trading, and investment strategies

CIRO Retail Securities Sample Questions:

1. What primary advantage do participating preferred shares provide over straight preferred shares in terms of potential returns?

A) They have the highest claim on assets in case of liquidation, ensuring stronger financial protection
B) They provide voting rights in corporate decisions, allowing shareholders more influence over management
C) They offer more predictable dividend payments than common shares, reducing income uncertainty
D) They provide additional dividends when company profits exceed a set threshold, increasing investor returns


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) $11,000,000
B) $10,000,000
C) $7,000,000
D) $9,000,000


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) Anchoring bias
C) Availability bias
D) Survivorship bias


4. A company reports net income available to common shareholders of $1,200,000 and declares common dividends of $360,000. What is the dividend payout ratio?

A) 40%
B) 30%
C) 20%
D) 70%


5. 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) 1.38
B) 1.13
C) 1.34
D) 1.22


Solutions:

Question # 1
Answer: D
Question # 2
Answer: D
Question # 3
Answer: B
Question # 4
Answer: B
Question # 5
Answer: B

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