Each segment register is multiplied by 16 before being added to the effective address during physical address computation. As a result, sequential values of segment registers result in physical addresses that are 16 bytes apart, yet, the maximum distance, based on effective address is 64 KB. That is why the segmented memory addressing approach in the 8086/8088 is overlapping - there are 64 K different combinations of segment register / effective address pair that will result is the same physical address. Well - sort of
paragraph size with an addressability range of 64 KB.
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