CIRO Retail Securities : RSE Exam

  • Exam Code: RSE
  • Exam Name: Retail Securities Exam
  • Updated: Sep 27, 2026
  • Q & A: 122 Questions and Answers

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About CIRO Retail Securities : RSE Exam Questions

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CIRO RSE Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Trade Execution and Market Integrity8–12%- Order routing and best execution
- Prohibited practices and compliance
Topic 2: KYC and Suitability20–24%- Client information collection and updates
- Suitability determination and documentation
Topic 3: Client Monitoring and Relationship Management8–12%- Performance reporting and CRM2
- Complaint handling procedures
Topic 4: Portfolio Construction and Managed Accounts10–14%- Asset allocation and risk metrics
- Registered account types
Topic 5: Equities18–22%- Equity product features and risks
- Trading mechanics and market structure
Topic 6: Mutual Funds and ETFs20–24%- Suitability and sales obligations
- Fund structures and disclosure documents
Topic 7: Structured Products10–14%- Product types and risk profiles
- Applicable regulatory rules
Topic 8: Fixed Income18–22%- GICs and other retail fixed-income products
- Bond characteristics and pricing

CIRO Retail Securities Sample Questions:

Question #1

If the beta of a company is 1.8, what can be said with certainty about its risk profile?

  • A. It has high systematic risk
  • B. It has high unsystematic risk
  • C. It has low unsystematic risk
  • D. It has low systematic risk
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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Question #2

An investor is considering purchasing a preferred share that provides a fixed dividend for an extended period, with no set maturity date. Which type of preferred share best meets the investor's considerations?

  • A. Perpetual
  • B. Convertible
  • C. Participating
  • D. Callable
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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Question #3

Which of the following principles is essential for effective portfolio construction?

  • A. Concentrating investments in a single asset to maximize returns
  • B. Diversifying across different asset classes to reduce risk
  • C. Avoiding an asset allocation strategy to maintain flexibility
  • D. Allocating funds to investments with highest returns
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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Question #4

An investor is choosing between two bonds: Bond A with a term to maturity of 2 years and Bond B with a term to maturity of 10 years. If interest rates are expected to rise sharply next year and assuming all other things are equal, which bond should the investor select to minimize interest rate risk?

  • A. Bond A, because its shorter term provides higher yield potential
  • B. Bond B, because its longer term avoids rate fluctuations
  • C. Bond B, because its longer term locks in current rates
  • D. Bond A, because its shorter term reduces exposure to rate changes
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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Question #5

A client sold a portfolio of stocks and realized a capital gain of $10,000 and a capital loss of $4,000. Under the Canadian capital gains tax system, what is the net taxable amount from these transactions?

  • A. $3,000
  • B. $10,000
  • C. $6,000
  • D. $5,000
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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