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hi Im Jimmy in this video were going back to the basics this time were looking at what is the required rate of return so were going to look quickly at the definition of order required rate of return is were going to look at what an example is and then were going to look at the impact that a that changing a required rate of return has on the fair value of a stock and ultimately how we can use this to make more money okay so now lets jump into the definition so the basic definition of what required rate of return is is exactly what it sounds like it is the minimum return on a percentage basis we need as investors so lets look quickly at an example so lets imagine that we need to return a minimum of nine percent per year that is and this is a dis this is our discounted cash flow calculator right so our required rate of return is right now nine percent well the basically what a discounted cash flow calculator does or any type of fair value most fair value methods say okay what are