CIRO Retail Securities - RSE Exam Questions

QUESTION NO: 1
A pension portfolio must fund a known liability in seven years. The manager wants to reduce the effect that interest-rate changes could have on the portfolio's ability to meet that liability. Which fixed-income technique is most appropriate?

QUESTION NO: 2
An investor is deciding between investing in a company with strong earnings, but high volatility or another company with stable returns, but slower growth. How would fundamental analysis influence this decision?

QUESTION NO: 3
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?

QUESTION NO: 4
A Registered Representative (RR) meets with an investor seeking a low-risk option for retirement savings.
The Representative considers recommending a bond fund. Which step best ensures compliance with know- your-product (KYP) regarding the bond fund's suitability?

QUESTION NO: 5
A company repurchases and cancels 10% of its outstanding common shares. If total net income remains unchanged, what is the most likely immediate mathematical effect?

QUESTION NO: 6
An investor contacts a Registered Representative (RR) to purchase a speculative stock that does not align with the investor's low-risk tolerance. What is the RR's primary obligation?

QUESTION NO: 7
What must be calculated when any portion of the money balance in a cash account is overdue by less than 6 business days?

QUESTION NO: 8
An equity manager is tasked with building a portfolio that is expected to outperform the market over the next several years. The manager identifies companies that are reinvesting their profits to fund rapid expansion, with the expectation that these companies will experience significantly higher earnings growth compared to the market average. The manager is less concerned with the current market price relative to the company's intrinsic value, and more focused on the potential for exponential growth in revenues and earnings.
Given this scenario, which investment strategy does this approach best represent?

QUESTION NO: 9
What is the primary purpose of collecting client information as part of the know-your-client (KYC) obligation?

QUESTION NO: 10
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?