Solution:
Step 1: Transform the numbers into binary:
0.5(10) = 1.00 (2) x 2-1 and -0.4375(10) = -0.0111(2) = -1.110(2) x 2-2
Step 2: Adjust the significant so that the exponents match.
-1.110(2) x 2-2 = - 0.111(2) x 2-1
Step 3: Add the significands
1.00 (2) x 2-1 + (- 0.111(2) x 2-1) = (1.00 – 0.111)x2-1 = 0.001(2) x 2-1
Step 4: Normalize result and check for overflow/underflow
0.001(2) x 2-1 = 1.000(2) x 2-4.
Step 5: Round and renormalize if necessary
1.000(2) x 2-4, no change necessary
Therefore, the finals answer is 1.000(2) x 2-4 = 0.0625(10)