Which of the Following Findings Would Support the Naive-Investor Hypothesis

Multiple Choice

Which of the following findings would support the naive-investor hypothesis?

A) A finding that security prices respond to income levels that differ solely because of alternative accounting methods with no cash flow consequences.
B) A finding that security prices do not respond to artificial book-income differences.
C) A finding that security prices do not respond to the adoption of LIFO for accounting for inventories and cost of goods sold.
D) A finding that security prices do not respond to a change in reported accounting earnings from the prior year.