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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Equities | Approximately 10% | - Common and preferred shares - Equity markets - Valuation concepts |
| Topic 2: Investment Recommendations | Approximately 11.7% | - Product selection - Client communication - Recommendation development |
| Topic 3: Monitoring, Reporting and Maintaining Client Relationships | Approximately 5.8% | - Client relationship management - Performance reporting - Account monitoring - Ongoing suitability review |
| Topic 4: Managed Products and Other Investments | Approximately 13.3% | - Mutual funds - Exchange-traded funds (ETFs) - Structured products - Alternative investments |
| Topic 5: Portfolio Construction | Approximately 10.8% | - Diversification - Portfolio risk management - Asset allocation |
| Topic 6: Fixed Income | Approximately 8.3% | - Yield and pricing - Government and corporate bonds - Interest rate risk - Credit risk |
| Topic 7: Securities Analysis | Approximately 11.7% | - Technical analysis - Financial statement interpretation - Fundamental analysis |
| Topic 8: Execution and Market Integrity | Approximately 5.8% | - Market integrity rules - Best execution - Order handling |
| Topic 9: Know-Your-Client (KYC) and Suitability | Approximately 22.5% | - Regulatory obligations - Know-Your-Product (KYP) - Client profile collection and maintenance - Suitability assessment - Investment objectives and risk tolerance |
1. A mutual fund has total assets of $84 million, liabilities of $9 million and 3 million units outstanding. What is the fund's net asset value per unit?
A) $25
B) $22
C) $28
D) $31
2. A Registered Representative (RR) places a large order for a stock in their personal account before placing the same order for a client. What Universal Market Integrity Rules (UMIR) violation is this most likely to be?
A) Wash trading
B) High-frequency trading
C) Front running
D) Spoofing
3. 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
4. A retail client is 25-year-old with a stable income, a high risk profile and has a good understanding of the securities and the securities market. They wish to open an account that allows them to take responsibility for their own investment decisions and allow them to seek growth opportunities in the securities markets. Under account appropriateness rules, which seems most appropriate?
A) An aggressive growth mutual fund to maximize potential returns
B) A balanced mutual fund account composed of a mix of equities and bonds
C) Order execution only (OEO) account
D) Direct electronic access (DEA) account
5. A client wants to buy a recreational vehicle costing $25,000 in 3 years. They plan to make deposits of $630 at the start of each month into an investment account. What approximate annualised return is required to achieve their goal?
A) 4%
B) 6%
C) 10%
D) 8%
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: C | Question # 3 Answer: A | Question # 4 Answer: C | Question # 5 Answer: B |
I have passed the RSE exam test on the first try, so happy. Thanks very much!
I love this RSE exam questions, it is excellent on the content. I passed the exam in UK the day before yesterday.
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