MVHR Calculation

Do we have to calculate 1+(Cov(Local Return, Local Currency)/Var(Local Currency)) on the test? Will they give us the inputs and we just calculate the hedge?

Also, I thought the local return had to be the risk free rate in order for us to hedge it (or is that just for hedging with forwards).

use LMR and LCR

The formula is in the curriculum, so I try to memorize (or even understand) it.