L. A Moving to another question will save this response. REQueronada Question 20 Mr. John makes two statements regarding different models used in valuation, determine whether the following statements are correct or incorrect. Statement 1: afbeta increase then systematic risk also increases which decreases the value of stock Statement 2: "Higher return on equity (ROE) then growth will be higher which increases the value of stock Statement 1 is correct and statement is incorrect. Statement 2 is correct and statement is incorrect Both statements are incorrect Both statements are correct - will save this response