50% is the percentage equivalent of the security's beta, which is .5. The security's beta is not the risk premium for the security.
5% is the risk premium for the market as a whole, which is R M ? RF , or (.09 ? .04). It is not the risk premium for a security with a beta of .5.
6.5% is the average of 4% and 9%. It is not the risk premium for a security with a beta of .5.
The risk premium for an individual security is its beta times the difference between the return to the market and the risk-free rate. Thus, the security's risk premium is .5(.09 ? .04), which is .025 or 2.5%.
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