Pass your actual test at first attempt with CIRO RSE training material
Last Updated: Aug 16, 2026
No. of Questions: 122 Questions & Answers with Testing Engine
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| Section | Weight | Objectives |
|---|---|---|
| Execution and Market Integrity | Approximately 5.8% | - Order handling - Market integrity rules - Best execution |
| Equities | Approximately 10% | - Equity markets - Common and preferred shares - Valuation concepts |
| Fixed Income | Approximately 8.3% | - Yield and pricing - Interest rate risk - Credit risk - Government and corporate bonds |
| Monitoring, Reporting and Maintaining Client Relationships | Approximately 5.8% | - Client relationship management - Ongoing suitability review - Performance reporting - Account monitoring |
| Portfolio Construction | Approximately 10.8% | - Diversification - Portfolio risk management - Asset allocation |
| Managed Products and Other Investments | Approximately 13.3% | - Exchange-traded funds (ETFs) - Alternative investments - Structured products - Mutual funds |
| Investment Recommendations | Approximately 11.7% | - Product selection - Recommendation development - Client communication |
| Securities Analysis | Approximately 11.7% | - Financial statement interpretation - Technical analysis - Fundamental analysis |
| Know-Your-Client (KYC) and Suitability | Approximately 22.5% | - Regulatory obligations - Know-Your-Product (KYP) - Suitability assessment - Investment objectives and risk tolerance - Client profile collection and maintenance |
1. 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) Convertible
B) Perpetual
C) Participating
D) Callable
2. The risk-free rate is 4%, the expected market return is 9%, and a security has a beta of 1.4. According to the Capital Asset Pricing Model, what is the security's expected return?
A) 9.0%
B) 11.0%
C) 7.0%
D) 12.6%
3. 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
4. An 8% $1000 semiannual bond was issued with an 8-year tenor and currently has 4 years remaining until maturity. The yields on new 8-year and 4-year bonds of comparable quality are 8% and 7%, respectively.
What is the present value of the bond?
A) $980.6
B) $1023.4
C) $1034.4
D) $1045.96
5. A managed fund earns a gross return of 8.4% before expenses. Its management expense ratio is 1.9%, and its trading expense ratio is 0.3%. Ignoring taxes and compounding, what approximate return remains for investors after these expenses?
A) 6.5%
B) 8.1%
C) 5.9%
D) 6.2%
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: B | Question # 3 Answer: C | Question # 4 Answer: C | Question # 5 Answer: D |
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