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Matrix maths help required!!!

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Can someone please help with the attached document?

With regards to the attached document, the cell highlighted in yellow,has the following formula:

=SQRT(MMULT(TRANSPOSE($D$12:$D$20),MMULT($F$12:$N$20,$D$12:$D$20)))

Can someone please explain how this works, namely the interaction between the two mmult formulae?

Any assistance will be much appreciated...

Thanks...
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