Online Access Free CIRE Exam Questions

What information should the Relationship Disclosure specify in relation to benchmarks?

• A.All the benchmarks which competitor products use to assess performance
• B.All the available benchmarks which could have been used to assess performance
• C.At least three different benchmarks to assess performance
• D.A general explanation of how benchmarks might be used to assess performance

An investor is considering investing in a private equity fund. Which of the following features is most commonly associated with private equity funds?

• A.They typically invest in publicly traded stocks and rely on market liquidity to generate returns
• B.They involve actively managing and improving the performance of portfolio companies before exiting
• C.They are usually structured like mutual funds and offer daily trading opportunities, providing high liquidity to investors
• D.They offer immediate returns with minimal risk, providing quick liquidity similar to publicly traded securities

A trader wants to apply a bearish strategy using options to profit from an expected decline in the price of a commodity. What is the most suitable approach?

• A.A long future position
• B.Sell a put option
• C.Purchase a call option
• D.Purchase a put option

Which of the following best defines a retail client under CIRO rules?

• A.An entity registered under securities law as a regulated dealer
• B.A client that must meet strict regulatory criteria to qualify as an investor
• C.An entity that requires full compliance with suitability and disclosure obligations
• D.A government-regulated institution with waived know-your-client (KYC) requirements

An investment advisor for a discretionary account purchased a stock then realized it was not aligned with the client's know-your-client (KYC) documentation. The stock is sold for a small gain. What should the advisor do?

• A.Conceal the error to avoid any reputational damage
• B.Notify the client and document the error as per firm policy
• C.Reinvest the proceeds in a stock that does align to offset the issue
• D.The incident is reasonable practice with no further action needed