Arrows do travel up. Check out the sight tapes and yardage cards on any archery program such as archers advantage or pinwheel software. When shooting at 3-4 yard targets, I use my 40 yardsetting often. Two years ago my 3-D setup was shooting 302 fps and I changed my marks all the time out to 30 yards. Pinwheel software can be downloaded for a 10 dayfree trial. To verify all your questions, you can use the simulation page, and it will show you what your impact point vs. point of aim would be. I opted for a slower more fogiving speed since, because the difference in drop was so miniscule, that I figured I could get more points by a spot on bow than a speed burner.

TFOX and MO Bow know what they are talking about.