said by Jim7:I don't mean to beat a dead horse but an inspector would probably tell you that that handrail has to return to the wall (top and bottom). I suppose you could terminate it at a post at the bottom. Are you planning on some sort of railing on the open side?
There are two separate issues with the hand rail. One is "Does it go far enough? and the other is "Should the handrail return to the wall". The pic you posted shows how a handrail could end in a post which would solve the first problem. Personally I'm not sure what code requires in this regard but I believe that the handrail is supposed to go as far as the bottom riser.
The second issue is that the ends of the handrail end in free space. The ends of a handrail are supposed to return to the wall. This is to prevent loose clothing or something like a purse strap from being able to catch on the free end of the handrail. Basically you are supposed to miter the end of the rail and glue on a small piece which returns to the wall.
Personally, I don't think it would look bad if the rail continued past the wall as far as the bottom riser, then returned back to the end wall (basically think of the handrail ending in a U shape going past the wall, ending in a piece with a miter on both ends and then a short piece returning to the wall of the hallway next to the stairs). This would take care of both problems. At the upper end, the rail should also return to the wall with a mitered piece added to the end.