What is the realized gain for Jeff, who sells 50% of his stocks for $50 each after purchasing them for $45 each?

To determine the realized gain for Jeff, you'll first need to calculate the total amount he received from the sale of the stocks and then subtract the total amount he initially invested in those stocks.

Jeff sold 50% of his stocks for $50 each. Assuming he had 100 stocks in total, selling 50% means he sold 50 stocks. The amount he received from the sale is calculated by multiplying the number of stocks sold (50) by the selling price per stock ($50).

So, the total revenue from the sale is:

50 stocks * $50 per stock = $2500.

Next, we calculate the total investment he made in those sold stocks. Since he purchased the stocks for $45 each, the cost for the 50 stocks he sold would be:

50 stocks * $45 per stock = $2250.

Now, to find the realized gain, we subtract the total investment from the total revenue:

$2500 (revenue) - $2250 (investment) = $250.

Thus, Jeff's realized gain is $250, making it the correct answer. This gain represents the profit Jeff generated from selling his stocks, which tells us that he earned more from selling the stocks than he spent to acquire them