First, I will never accept home assignment. There is lots of problems with this even if intentions are good.
I assume this kind of request tells me something about the organization and the manager making the request.
I will ask if it is company policy or local initiative. Sometimes managers just don't know any better.
I would politely explain why I won't comply. I will propose alternative solution which is session over Skype that lets me show how I work while I gather requirements, design, implement and verify the solution
Lastly, I will observe the manager dealing with the unexpected request and grade based on how she deals with it. Remember, they want to got to know you to get better deal, you should do the same.