B is correct. There's no evidence that supports that investors are compensated for fraud risk through higher returns or lower fees. The statement A is incorrect because disclosures regarding past regulatory or legal violations are effective in predicting fraud. Statement C is incorrect as it is not accurate to infer that conflicts of interest cause fraud, or that their prohibition would deter fraud, even though certain characteristics like conflicts of interest can predict fraud. Statement D is incorrect because the SEC now provides access to historical data, contrary to the situation before 2007. The study mentioned in the reading suggests that improving public access to comprehensive historical disclosures could increase the benefits these disclosures were meant to provide.