  We generalize the Arbitrage Pricing Theory (APT) to include the contribution
of virtual arbitrage opportunities. We model the arbitrage return by a
stochastic process. The latter is incorporated in the APT framework to
calculate the correction to the APT due to the virtual arbitrage opportunities.
The resulting relations reduce to the APT for an infinitely fast market
reaction or in the case where the virtual arbitrage is absent. Corrections to
the Capital Asset Pricing Model (CAPM) are also derived.
