Yes. Pigments are blended into an oil base to form an emulsion. The pigments are ground finely (with a range of particle sizes sought out deliberately), and the drying oil is formulated to "hold its shape" on the canvas, and to gradually escape the medium leaving the pigment behind. A link can be found below.
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Yes, since both are water based paints you can mix the to together.
Only if the 'flat paint' is water based too.
Yes you can. Substitute 20% of the water for the cement mix with latex paint (Water based paint) and mix slow and thorough. Don't over used too much paint it will damage the integrity of the concrete.
Oil based paint Is paint is soluble in kerosene. Water based will not mix
Spirit based is oil based and oil and water don't mix. Use paint thinner or mineral spirits.