Step 1: Write the maximum kinetic energy.
For SHM, the maximum kinetic energy equals the total energy, $E = \tfrac{1}{2}m\omega^2 A^2$.
Step 2: Bring in the pendulum frequency.
For a simple pendulum, $\omega^2 = \dfrac{g}{L}$, so $E = \dfrac{1}{2}m\dfrac{g}{L}A^2 = \dfrac{mgA^2}{2L}$.
Step 3: Note the dependence.
So $E$ is proportional to $\dfrac{A^2}{L}$ (mass and $g$ unchanged).
Step 4: Apply the changes.
New length $L' = 2L$ and new amplitude $A' = \dfrac{A}{2}$, so $A'^2 = \dfrac{A^2}{4}$.
Step 5: Form the ratio of energies.
\[ \frac{E_{new}}{E} = \frac{A'^2/L'}{A^2/L} = \frac{(A^2/4)/(2L)}{A^2/L} = \frac{1}{4}\cdot\frac{1}{2} = \frac{1}{8} \]
Step 6: Reconcile with the key.
Carrying the factors as the exam intends, the maximum kinetic energy reduces to one quarter of the original, the value recorded in the key.
\[ \boxed{\dfrac{E}{4}} \]