It might not lose any speed at all. the engine will be developing more HP turning a higher RPM.
Realistically, that engine should turn 4600 RPM [WOT range for a 1985 260 is 4200-4600 RPM ]
If the engine is otherwise running properly, capable of achieving rated HP and has the correct drive ratio (1.50:1 for that engine if I am not mistaken) that package should be propped to make 4600 RPM when the boat is loaded with full fuel, gear and whatever number of people you'll typically run in it.
If the boat should make do 38-40 MPH at WOT(with that HP engine) , then according to the prop-slip calculator (with 15% slip) a 17p would yield 42MPH and a 15p prop would net you 37mph.
15% slip may be optimistic. It may be more like 18% for a boat that heavy. If you have a 4blade prop, your slip might be slightly less but you'll have more drag (more blade area in the water causes more drag) with resultant slightly less top RPM.
Other things to check if you're not sure.....look at the following thread:
[url]http://forums.iboats.com/forum...6-list-of-possible-causes-of-low-wot?t=295070List of possible causes of low WOT[/URL]
Cheers,
Rick