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In this lecture, the logic behind Required Rate of Return, Discount Rate, and Opportunity Cost is explained, showing why they represent the same idea from different perspectives. The session clarifies how risk determines the return you demand, why the required return becomes the discount rate, and how opportunity cost applies beyond monetary decisions. It also explains real vs nominal returns using inflation and purchasing power, with a gold-based example to address a common exam trap. Class notes written on the board are available in the App under the ‘Quantitative Methods’ - ‘Time Value of Money’ chapter. Please note that the lectures are to be done as per the order of the playlist and not the textbook. CFA | FRM | Live Classes | Videos Available Globally For Details: https://aswinibajajclasses.com WhatsApp: +91 9831779747 or https://wa.link/xkq0w0?phone=91983177... & we shall get back to you. 00:00 – Introduction: Three Confusing Terms 01:10 – FD vs Equity Example 03:05 – Expected Return vs Guaranteed Return 05:10 – What Is Required Rate of Return (Investor View) 07:40 – Required Return as Discount Rate 10:15 – Lending to a Friend Example 13:10 – Demand & Supply of Capital 16:40 – Risk Levels & Equilibrium Rates 19:20 – What Is Opportunity Cost (Non-Money Example) 22:10 – Opportunity Cost in Daily Life 25:00 – Interest Rates & Spending Behavior 28:00 – Inflation Introduction 30:30 – Real vs Nominal Return Explained 34:30 – Inflation Formula 37:30 – Gold Example Don't forget to subscribe to stay updated on future content, and let's embark on this enlightening journey together! Faculty- Aswini Bajaj, a qualified CA, CS, CFA, FRM, CAIA, CIPM, CFP, RV, CCRA, CIIB, CIRA, and AIM. He is also a guest lecturer (across 180+ colleges and 35+ IITs and IIMs), corporate trainer, and CEO of Leveraged Growth (Research and Consulting). Access our Social media links for more updates: Instagram: / aswinibajajclasses Facebook: / aswinibajajclasses LinkedIn: / finance-mentor-aswini-bajaj Twitter: https://x.com/ABClasses_ #CFA #FRM #AswiniBajaj #MentorForLife #InvestInYourself Disclaimer: This video may contain unintentional copyrighted material, the use of which has not been specifically authorized by the copyright owner. The content is made available for educational and informational purposes. If you believe that your copyrighted work is being used in our video without permission, please contact us at [email protected], and our team will respond within 45 days to address your concerns.