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CIRO RSE real answers - Retail Securities Exam

RSE
  • 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
EquitiesApproximately 10%- Common and preferred shares
- Valuation concepts
- Equity markets
Investment RecommendationsApproximately 11.7%- Product selection
- Recommendation development
- Client communication
Portfolio ConstructionApproximately 10.8%- Portfolio risk management
- Diversification
- Asset allocation
Fixed IncomeApproximately 8.3%- Interest rate risk
- Government and corporate bonds
- Yield and pricing
- Credit risk
Monitoring, Reporting and Maintaining Client RelationshipsApproximately 5.8%- Account monitoring
- Ongoing suitability review
- Client relationship management
- Performance reporting
Know-Your-Client (KYC) and SuitabilityApproximately 22.5%- Regulatory obligations
- Client profile collection and maintenance
- Suitability assessment
- Know-Your-Product (KYP)
- Investment objectives and risk tolerance
Execution and Market IntegrityApproximately 5.8%- Market integrity rules
- Order handling
- Best execution
Managed Products and Other InvestmentsApproximately 13.3%- Structured products
- Mutual funds
- Exchange-traded funds (ETFs)
- Alternative investments
Securities AnalysisApproximately 11.7%- Fundamental analysis
- Financial statement interpretation
- Technical analysis

CIRO Retail Securities Sample Questions:

1. A client invests $20,000 today in an account earning an annual compound return of 5%. Approximately how much will the investment be worth after six years, assuming no additional deposits or withdrawals?

A) $26,802
B) $24,000
C) $28,000
D) $30,402


2. A 45-year-old investor has been working with their Registered Representative (RR) for over a decade. Their portfolio has been structured to prioritize long-term growth with a moderate risk tolerance. Recently, the investor inherited a substantial sum from a relative, significantly increasing their overall net worth. They are now considering early retirement and have expressed interest in shifting their investment strategy. What should the RR do?

A) Renew the investor's information and discuss what adjustments should be made in light of this
B) Discourage the investor from withdrawing any funds to protect their long-term investment growth
C) Keep the investor's investments unchanged to maintain consistency with the client information
D) Rebalance the investor's portfolio to match the appropriate Investment Dealer model portfolio


3. A manufacturing company reports annual cost of goods sold of $2,400,000. Its average inventory during the year was $400,000. What is the company's inventory turnover ratio?

A) 6.0 times
B) 8.0 times
C) 5.0 times
D) 4.0 times


4. When can a temporary hold be placed on a client's account?

A) When a client fails to attend an annual review meeting
B) When the client moves new funds into high-risk products
C) When a client delays responding to a trade clarification request
D) When the client's behaviour indicates exploitation or capacity


5. What is the expected return of a portfolio of investments if the risk-free rate is 5%, beta is 2.0, portfolio variance is 15% and market rate of return is 10%?

A) 15%
B) 10%
C) 12%
D) 20%


Solutions:

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

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