Research on the theory and confirmation of Markowits investment combination

This paper selects 11 kinds of stocks listed in Shanghai Stock Exchange Market and 9 kinds of stocks in Shenzhen Stock Exchange Market which are the stocks issued in the 7 provinces in the West China. These stocks represent various of businesses in the Chinese markets. This paper also offers basic analysis of these stocks with the emphasis on the analysis of investment combination by Markowitz model, determining the profit and the equation of stocks combination. Meanwhile, it tries to find out effective stock combination by examining the change of weight of individual stocks, so that the effective combination will give correct guidelines to the investors for their comparison and judgment of the quality, the risk, and expected profit of the stocks issued within the area of West China.