Concept:
To arrange artists chronologically, we compare their birth period and their art historical period.
Step 1: Identify the earliest artist.
Rembrandt was a seventeenth-century Dutch artist.
So, the first is:
\[
A = \text{Rembrandt}
\]
Step 2: Place Goya.
Goya belonged to the eighteenth and early nineteenth century.
So, the second is:
\[
C = \text{Goya}
\]
Step 3: Place Daumier.
Daumier belonged to the nineteenth century.
So, the third is:
\[
E = \text{Daumier}
\]
Step 4: Place Degas.
Degas was a nineteenth-century French artist associated with Impressionism.
So, the fourth is:
\[
B = \text{Degas}
\]
Step 5: Place Picasso.
Picasso belongs to modern twentieth-century art.
So, he comes last:
\[
D = \text{Picasso}
\]
Thus, the correct order is:
\[
A \rightarrow C \rightarrow E \rightarrow B \rightarrow D
\]
Hence:
\[
\boxed{\text{(B) A, C, E, B, D}}
\]