query

1. incorporation of risk into investment appraisal, how can the use of capm be used to derive discount rate ? is it through the utilization of beta ? 2. in the management of political risk, there are a few ways to manage the finance investment in relation to political risk and one of the way is the distribution control. in the textbook it says control and development of such items as pipelines and shipping facilities will deter expropriation of assets. i'm not sure how these items can manage political risk ? 3. in the assessment of creditworthiness, investment with high default and high risk will have low credit scores and vice versa ? 4. when we say management buyout , it's when executive managers join with financing institutions to buy business from the entity which currently owns it. however textbook says that one variant of management buy out is called "spin out" and this means a parent company maintains a stake in the business. Does it mean that parent company sells the equity stake to the managers but in the end, they still maintain some portion of the equity stake of that company that they sell to managers ? 5.in share buyback, y companies buying their own shares is considered as a good signal ???