With $10^{0.5}$ you have to do a "half multiplication", not a multiplication by half. What this "half multiplication" is doesn't follow from any universal law, but only by extending in a coherent way the rules valid for integer exponents.
Since, for integer $m$ and $n$ you have
$$
a^{m+n}=a^m\cdot a^n
$$
you can derive also that
$$
(a^m)^n=a^{mn}
$$
(just repeat the multiplications and count the factors). So, what $a^{3.5}$ should mean? Well, a possible choice comes from doing
$$
a^7=a^{3.5\cdot 2}\overset{*}{=}(a^{3.5})^2
$$
where the equals sign marked with $*$ is where we apply an extension to the rule above.
Thus one can try defining
$$
a^{3.5}=\sqrt{a^7}.
$$
This is how actually exponentiation to a rational is defined:
$$
a^{\frac{p}{q}}=\sqrt[q]{a^p}
$$
and it can be shown that the rules
$$
a^{x+y}=a^x\cdot a^y,\qquad
(a^x)^y=a^{xy}
$$
continue to hold for all rational numbers $x$ and $y$ (and positive $a$).