BACK: With size 5 needles and MC, cast on 59 (63, 67) sts. Work in k 1, p 1 rib for 1 ½", inc 1 st at end of last row -- 60 (64, 68) sts. Change to size 7 needles. Beg on RS, work in St st (k on RS, p on WS) in stripe pat alternating (6 rows CC, 6 rows MC) once. Work 16 rows in MC only (anchors will be embroidered here later). Continue in stripe pat, alternating (6 rows CC, 6 rows MC) until piece measures 15" (16", 17") from beg or desired length. Bind off all sts.
FRONT: Work same as Back until piece measures 13½" (14½", 15½") from beg, end WS. Shape neck: Next row (RS): Maintaining stripe pat, k 26 (27, 29) sts, join a new ball of yarn and work center 8 (10, 10) sts and sl onto a holder, k rem 26 (27, 29) sts. Working both sides at the same time with separate balls of yarn, continue in stripe pat; AT THE SAME TIME, bind off at each neck edge at beg of every other row: 3 sts twice, then 2 sts twice -- 16 (17, 19) sts rem each side. Continue in stripe pat until Front measures same as Back to shoulders. Bind off rem sts each side. SLEEVES: With size 5 needles and MC, cast on 27 (29, 31) sts. Work in k 1, p 1 rib for 1½", inc 1 st each end of last row -- 29 (31, 33) sts. Change to size 7 needles. Work in stripe pat, alternating (6 rows CC, 6 rows MC) throughout; AT THE SAME TIME, inc 1 st at each end every 4 rows 8 times, then every 6 rows 5 (6, 7) times -- 55 (59, 63) sts. Continue in stripe pat until Sleeve measures 13½" (14½", 15½") from beg or desired length. Bind off all sts loosely. FINISHING: Sew shoulder seams. Neckband: With RS facing, using circular needles and MC, pick up and k approx 60 (62, 66) sts evenly around neck edge. K 1 rnd. Then work around in k 1, p 1 ribbing for 6 rnds. Bind off loosely in rib. Embroidery: With MC yarn, foll chart duplicate stitch anchors on Front and Back of sweater on 16 rows MC. Mark for Sleeve placement 6" (6½", 7") down from shoulder seams. Sew in Sleeves between markers. Sew side and Sleeve seams.
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