With supported camera and correct Camera Raw version for your Premiere Elements version, Camera Raw will allow you only to import the raw image or a dng file into the project as source media. You need Photoshop Elements in this condition to edit the raw image in the Camera Raw dialog.
Your answers are found in the following
This one tells us that your camera is not supported until Camera Raw 8.3.
This one tells us that Premiere Elements 11 does not support Camera Raw 8.3. You would need to move to the next Premiere Elements version or use the dng converter.
Please review and consider. Any questions or need clarification, please do not hesitate to ask.