CIRO Retail Securities - RSE Exam Practice Test

A Registered Representative (RR) is managing a client's portfolio and learns about a high-risk investment opportunity that could yield substantial returns. However, the Representative fails to inform the client about the potential downsides of the investment and proceeds with the transaction. Which duty has the Representative failed to uphold?

A five-year bond has a face value of $1,000, an annual coupon of $60 and a market price of $950. Using the approximate yield-to-maturity formula, what is the bond's approximate yield to maturity?

What is the main driver of the intraday price of an exchange-traded fund (ETF)?

Which of the following is a key factor in valuing a manufacturing company's stock?

Which of the following best describes the type of market data typically provided by an equity exchange such as the Toronto Stock Exchange (TSX)?

A corporation is liquidated after it becomes insolvent. All secured and unsecured creditors have been paid, followed by the full liquidation entitlement of the preferred shareholders. Who is entitled to any assets remaining after these claims?

An investor, with a low risk tolerance and a short-term investment objective, approaches a Registered Representative (RR) for investment options. Which best fulfills suitability requirements linking this know- your-client (KYC) information to a recommendation?

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?

An investor owns 600 common shares trading at $45 per share. The company declares a 3-for-2 stock split.
Assuming no market movement, what should the investor hold immediately after the split?