school me on squirter cam colors

The formula is calculating the actual air flow potential of the engine with an 85% volumetric efficiency which is where most street engines are.

The 525 CFM rating of the Demon carb is at a 1.5"Hg pressure drop across the carb. If you have that much pressure drop on the engine it's a restriction and the carb is not big enough. You want less than .5"Hg drop on the engine at WOT. The Demon carb will flow much less than 525 CFM at a .5"Hg pressure drop.

I would say the 525 Road Demon is not too big.

If you go to the Holley web page and look up their pump cam kit they have a chart with the different shapes of the flow for the various colored cams. There is not a huge difference between them so changing them is only going to be fine tuning.